Premium Financed Life Insurance

Jul 30, 2007

  1. 77flanery
    Offline

    77flanery Expert

    Posts:
    31
    Likes Received:
    0
    Has anyone been approached about this. I got an E-mail that looked like this:

    What does everyone think about this. For real or scam and does it sound like it would be legal? It sounds too go to be true for me.


    You will be enrolling people in premium financed life insurance. This
    enables the client to attain at least $1,000,000 in life insurance
    without a penny out of their pocket.

    A bank or investment company pays the premiums. Why? - because it
    profits them. They finance it with the expectation of earning a
    return at some point in the future where there can be a profit gained
    during the life of the insured by selling it as a "Life Settlement" -
    or at the death of the insured where they are paid their interest and
    the insider's beneficiary is paid the remaining.

    The insured (your client) will benefit by having a policy that will
    pay his/her beneficiary upon death less the financed premiums paid
    back to the bank. There may be other options as they can sell their
    policy after 2 to 5 years at a profit as a Life Settlement and profit
    from this as well.

    The financing is "non-recourse" financing which means that the only
    security is the policy itself.

    This is a total win-win-win-win scenario:

    1. Your client wins since he/she gets a benefit that costs him nothing
    out of pocket (we cannot ever say its "FREE").

    2. The bank or investor wins since they get a great return on their
    investment that is fully secured by major insurance carriers.

    3. The insurance carriers win since they get premiums, which drives their
    profits.

    4. You win by earning huge (and I do mean huge) commissions.


    Let's talk about commissions - this might be dangerous to your health
    since you won't be able to sleep for the next few nights.

    For ages 68 to 90, you will be paid $10,000 for each $1 million written.
    For ages less than 68, you will be paid 60% of the first year's
    premium less what the bank or investor may require which may be as
    much as 50% of the first year's premium (this amount will depend on
    the financing situation). So bottom line is you should expect 30% to
    40% of the first year's premium.

    Since these deals are taking up to 3 months to get done, we are
    looking to pay an advance on the initial application of $100.

    Here's the catch - you do need to be licensed to sell life insurance.
    Licensing typically takes a few weeks or so. These deals take 2 to 3
    months, so you can get your license before these deals get
    paid out - perfect timing.

    Yes, you can write your own policy and make money on that - and you
    really need to - why not - it doesn't cost you anything.


    Do the research - you will find that premium financing was only being
    offered to the very wealthy and usually ages 70 and up. We have opened
    it up to most everyone.
     
  2. STIBROKER
    Offline

    STIBROKER Like My post and enter the DRAWING,,,, Moderator

    Posts:
    10,528
    Likes Received:
    480
    State:
    Texas

    OMFG.....run for the hills......that statement alone is jail time.....you can start reading here....HOW MUCH DO THEY WANT TO SIGN YOU UP.......


    http://www.insurance-forums.net/forum/new-zero-premium-life-insurance-policy-thread1074.html
     
  3. nate124
    Online

    nate124 Guest

    Haha.....
     
    nate124, Jul 30, 2007
    #3
  4. Bob_The_Insurance_Guy
    Offline

    Bob_The_Insurance_Guy Guru

    Posts:
    1,908
    Likes Received:
    14
    State:
    Georgia
    PT Barnum was right!

    :chatterbox:
     
  5. STIBROKER
    Offline

    STIBROKER Like My post and enter the DRAWING,,,, Moderator

    Posts:
    10,528
    Likes Received:
    480
    State:
    Texas

    lets start with this......

    Provada: Life Insurance Premium Financing

    Premium financing is a method of funding the purchase of life insurance for those individuals who have significant assets, but do not have or want to use liquid capital to pay the premium on a life insurance policy. By borrowing the money to pay the life insurance premiums, the insured frees up capital that can be used more efficiently. The use of premium financing may lower out-of-pocket costs and potential gift taxes.

    The best candidates for premium financed life insurance typically have a minimum net worth of $5 million. Collateral for the loan usually consists of personal assets and can be reduced by the cash value in the policy being financed.

    Plan highlights include:
    • » Target market: at least $5 million estate and a minimum of $100,000 annual life insurance premium
    • » Frees up business or personal investment capital for more efficient usage.
    • » Leverages available assets to provide needed insurance coverage with minimal out-of-pocket expenses.
    • » Potential to reduce gift taxes.
    • » Loan rate typically tied to a published rate like LIBOR, plus a spread.
    • » Required collateral can be offset by cash values growing tax-deferred in the policy.
    • » Can provide substantially greater internal rate of return on the life insurance policy death benefit over non-financed payment methods.





    and they are going to give you leads.....HAHAHAHAHAHAHAHAHAHAHAAHAHA
    HAHAHHAHAHAHAHAHAHAHHAHHAHAHHAHAHAHAHAHAHAHAHAHAHAHA
    HAHAHHAHAHAHAHAHAHAHHAHHAHAHHAHAHAHAHAHAHAHAHAHAHAHA.......man...that has to be some mailing list......hello mr dell....I got your name from a ....
     
    Last edited: Jul 30, 2007
  6. 77flanery
    Offline

    77flanery Expert

    Posts:
    31
    Likes Received:
    0
    So I take it that this is not legal. I am new to the industry. There is a conference call tonight so I going to listen in just out of curiosity.
    Is there any question you guys suggest me to ask.
     
  7. indaville
    Offline

    indaville Super Genius

    Posts:
    125
    Likes Received:
    3

    It is not illegal. Let us know how the call goes.

    Matt
     
  8. senior-advisor-indiana
    Offline

    senior-advisor-indiana Guru

    Posts:
    11,305
    Likes Received:
    235
    State:
    Indiana
    Is Ali doing the calls?
     
  9. STIBROKER
    Offline

    STIBROKER Like My post and enter the DRAWING,,,, Moderator

    Posts:
    10,528
    Likes Received:
    480
    State:
    Texas

    no...post the conf. call # and the pass code....we will let you know......we had some brutal questions on the last conf call like this.....
     
  10. agent007
    Offline

    agent007 Expert

    Posts:
    54
    Likes Received:
    0
    Stoli????


    Yep, there are popping up everywhere.
     
Loading...