New zero premium life insurance policy/life settlements

Discussion in 'Life Settlements Forum' started by maryjd123, Apr 13, 2007.

  1. sman
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    sman Well-Known Member

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    Have your friend forward the email with the contact information to me. I'm in Georgia and I'd like to see how "legit" this is. I'll be happy to report my findings to the forum.
     
  2. somarco
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    somarco Well-Known Member

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    Yes, same thing.

    Can be term.

    Perm life is usually stripped of the net cash value before being viaticized.

    Kind of.

    The insured is made an offer on the policy. The offer is made once the insured submits medical records (if they are terminal) or submits to a physical (if they are old but in good health). An actuary, medical professional, or someone skilled in reading medical history makes an assessment of the life expectancy of the insured. The life settlement company then reviews the policy and makes an offer.

    The offer can vary depending on life expectancy. Rarely is an offer made where the life expectancy exceeds 5 years. A life expectancy of 1 year or less may have an offer up to 70% or so of the face. A life expectancy of 5 years may generate an offer of 20% of the face.

    Other things that can affect the desirability of the policy include the type of policy (term or perm) and whether or not the policy is beyond the contestable period.

    There may be tax ramifications to the insured and there are potential tax issues for the investors. Any profit is earned income, not capital gains. The transaction needs to be structured in such a way to (if possible) avoid the transfer for value rules.

    This is a very complicated transaction.

    For more info, particularly from an investor standpoint, follow this link.

    http://www.google.com/search?hl=en&...result&cd=1&q=bonded life settlements&spell=1
     
  3. policy doctor
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    policy doctor Well-Known Member

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    Thank You,

    Global Medicare Marketing
    Leon Cooper
    National Recruiting Director
    601-683-6635 Office
    601-683-2179 Fax
    Globalmedicaremarketing.com
     
  4. maryjd123
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    maryjd123 Well-Known Member

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    The information that i have posted on this forum is to the best of my knowledge. I am not trying to recruit a pyramid scheme etc etc....
    I have posted this to let you guys know about something that is going to happen here on Wednesday -- you know I could of not posted -- but you can guarantee that once it was announced that someone else would of.. so if you feel like flaming me -- well hell go ahead

    as soon as my manager sends me the link to the website i plan on posting it here so we can all have the info that is needed ---

    i have already sent in my paperwork for nonresident licensing in north and south carolina --

    I just see this as a huge opportunity for myself and for you as well -- if you feel that it is not for you -- well fine then --

    and Scott -- dont send me any spam -- im not and i havent been spamming...

    and for the idea with the continental care policy thru cont. life with this -- hey i thought it was pretty good ----
    but i was soliciting ideas -- i was hoping i would get some more from you guys as how to promote this... but apparently i was wrong...i thought this was a forum where we all share together...
     
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  6. Crabcake Johnny
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    Crabcake Johnny Well-Known Member

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    I think a lot of the backlash involves the way things like this are presented - which is not in a professional manner. These people obviously know little about marketing. Ad like the ones they post only attract pikers. "Real" agents just get their radar up.

    Don't you tend to scrutinize this:

    HOLY C RAP!!!!!! INSANE NEW OPPORTUNITY THAT WILL MAKE YOU RICH RICH RICH! MAKE $200, $2,000, $10,000 A DAY!!!! WHAT IN THE HELL ARE YOU WAITING FOR!

    For the love of the Lord - why can't people just advertise in a professional manner where legitimate agents will respond.
     
  7. midwestbroker
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    midwestbroker Well-Known Member

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    Could you sell a Zero Premium Life Product?
    Issue Ages 65-85
    Limited Underwriting
    $250 commissions per application
    10 day issue

    Email today for details and how to participate in our unique lead
    program!

    [email protected]

    This is 1 of 3 of the messages that I got in my yahoo group. Seems like a lot of IMO's are looking into this.
     
  8. Frank Stastny
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    Frank Stastny Well-Known Member

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    I recently saw an add that said:

    Show me the money!
    Make $150,000 first year. Free leads, no experience necessary. Work out of your home. Must like people. Don't pass this opportunity up. Call today and start tomorrow. Call...

    Same concept. I loved the "must like people".​
     
  9. STIBROKER
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    STIBROKER Super Moderator Moderator

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    [FONT=arial,helvetica,univers]Seniors entering these insurance arrangements could get stuck with significant tax or legal bills if the deals don't work out as advertised. "Nowhere in the hype will you learn of the potential tax liabilities or the fact that anticipated profits may not materialize," says Jensen. There are other risks, too. For example, if you sell a policy and then decide later that you need additional insurance, you could find you've used up all of the coverage an insurance company will sell you.

    Lawmakers and insurance regulators have started to examine these deals. In recent months insurance commissioners in New York, Utah, Idaho, and Louisiana have concluded that some of them violate state laws designed to protect consumers from strangers who want to bet on their lives. Lawmakers in at least five states are backing bills that would regulate or outlaw many insurance deals initiated and financed by investors. Insurance commissioners are also pushing states to enact laws requiring policyholders who participate to wait five years before selling policies to investors vs. today's two-year delay.

    Insurance companies are cracking down, too—in part because they fear these arrangements will depress profits. When insurers set premiums, they often assume a certain number of policyholders will drop their coverage as financial or personal circumstances change. But as investors intent on collecting death benefits amass policies, insurers worry they'll have to pay benefits on a greater number of policies than their actuarial models anticipated. To make these deals less appealing, American International Group (AIG ) recently hiked the cost of a universal life policy—the variety typically used—by 15% for those over age 70, says spokesman Chris Winans. Other insurers have rescinded policies. MetLife Inc. (MET ) has gone after policyholders for allegedly violating signed statements in their applications. "It clearly asks them to attest that they are not purchasing with the intent to resell," says spokeswoman Holly Sheffer.
    [/FONT]
     
  10. somarco
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    somarco Well-Known Member

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    No one is out to beat you up Mary. This may be very real but too many other, similar schemes, have failed to pan out.

    If this is going to blow up, would you rather know up front what to watch out for or find out after you have invested time in the game and put countless clients into this, only to have it blow up and possibly ruin your career?

    I have a friend who promoted pay phones a few years ago to seniors. The guy made well over $1M in less than 2 years selling phones from a local company that guaranteed a 14% return on your money over 5 years plus a full return of your investment at the end of 5 years.

    I attended more than one seminar on the opportunity and watched as, with each seminar, the entry point became higher & higher. Initially the phones sold for $2500. Then they went for $3500 then over $5000. All within a 2 year time frame.

    At the same time cell phones were becoming more popular, dropping in price, and becoming more portable than the early "brick" phones.

    The firm that owned the phones and leased them to investors was local. I visited their headquarters and met the owner. A neighbor invested all of his liquid retirement cash ($800,000) in the phones and kept buying as the price continued to rise. This guy was no dummy. He had retired several years earlier as an exec in the Playtex corporation.

    Eventually the SEC & FBI got involved as did the AG. The SEC came crashing down on those who sold the product as they considered it an unregistered security. (Those who sell these life policies could very well be caught up in the same trap). As the legal issues began to make the local papers, I got a call from the FBI. They wanted to interview me about my dealings with the company. (I was appointed to sell but never sold a single phone. However, I was in the company's database which was seized by the FBI). They wanted my client list and details of all commissions paid on the sale of the product.

    Eventually the guy who started and owned the company was arrested and charged with running a Ponzi scheme. Quite a few people lost money in the deal, including my neighbor who lost his entire investment. My friend lost his insurance license. I have lost track of him but I suspect, assuming he is still in the country, he is behind bars somewhere.

    This being said, let me repeat. Would you rather have a heads up as to what can happen or go forward blindly and lose more than you can ever make in this deal at $250 a pop.

    By the way, the commission to those selling the pay phones was 15%. Most folks bought at least 5 phones making it a $4000 commission deal on average.

    15% commission to the agent, 14% return to the investor and tax breaks to boot. A win-win situation where eventually everyone lost.
     
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