Life Insurance For Seniors-New Financial Approaches

So you, the senior, want life insurance but you don’t want to pay the high premiums? Well, you’re in luck, it seems, if you qualify.

Here’s the skinny. You apply for life insurance through a premium financing company (you must be somewhat healthy-no cancer, serious cardiac conditions, or major diabetic problems). After providing all your medical history, and taking a short medical exam at your residence, the life insurance carriers rate Continue reading

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So, basically what we have here is a mortality arbitrage being done by the insurance carrier (issuer), and the institutional funders on the other hand. The insurance companies are using their internal underwriters to determine life expectancy, based upon their reading of a client’s medical records, and utilizing internal mortality tables.

The funders are using sophisticated financial models that look at premiums and life expectancy. These institutional funders utilize independent Life Continue reading

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Today I’m going to rant a bit about the holier than thous-the life insurance community and the Senior Life Insurance market. What a wacky world, games of intrigue, and cat and mouse, driven, of course, by the desire for short term profits.

The games are all about perception. One group, the life insurance companies, believe their pricing models and structure to be infallible; the newcomers, who represent the financial institutions Continue reading

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Premium Financing? What the heck is that I asked my friend Chris?

So began a long story of how large Institutional Funders were interested in financing a life insurance transaction whereby the insured receives a large life insurance policy, names his or her own beneficiary, and is covered up till the time the “loan” is recouped. Turns out the loan will have to be repaid after 2 years or could even Continue reading

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