Life Insurance For Seniors-New Financial Approaches

Today’s seniors have a multitude of financial opportunities when it comes to life insurance. There’s the concept of premium financing to obtain insurance, and the life settlements market to sell an unwanted policy.

Did you know, though, that a senior can obtain a loan if they want to keep the policy but require some emergency funds? An easy solution is to is to borrow against the policy. The senior must approach the life insurance issuer and clearly state the financial need for the funds. The loan amount is usually determined as a percentage of the policy face value, but every issuer has its own rules and regulations.

A fixed period of time is scheduled for loan repayment, typically in monthly installments. During this period of… Continue reading

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By Kimberly Lankford
Provided by Kiplinger

Kenneth Sahs, 71, faced a once-in-a-lifetime decision last year. His $500,000 convertible term life insurance policy would soon expire. Sahs could drop it and get nothing or convert it to universal life, a form of cash-value insurance, and take on $12,000 a year in premiums.

Then Sahs and his wife, Marie, read in Kiplinger’s that they had a third choice: to sell the Continue reading

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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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It always comes down to available capital for investments, doesn’t it? Whether the funds are coming from an individual, small bank, hedge fund, pension fund, well, just about anywhere, everyone seems to be licking their collective financial wounds. The senior life insurance industry is no different.

The credit crunch, which saw the toppling of many a company, including the venerable Bear Stearns, has taken its toll on almost everyone, and the 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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The life settlements market has grown from a tiny speck only five years ago to a multi billion dollar industry today. Did you know that institutional buyers are willing to pay you for your life insurance policy?

These buyers range from US and Foreign banks, Hedge Funds, Pension Funds, College Endowments, and even the Insurance companies themselves, like Warren Buffet’s Gen Re (reinsurance) that has purchased over $500,000,000 of these policies.

Almost 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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Is it possible to find low or no cost life insurance in the senior market? Absolutely. We’ll be talking about various programs that even provide no out of pocket expenses shortly, including immediate annuities, premium financing, life settlements, financing existing life policies, and more, so come back soon and we’ll cover one of these unique approaches Continue reading

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This senior life insurance blog is all about creative ways for seniors to obtain much needed life insurance.

Life Insurance for Seniors allows seniors to typically obtain life insurance with no, or minimal out of pocket expense. Our creative programs usually require no cash outlay.

Come on in, explore the basics, and then head on over to life insurance for seniors for a more in depth discussion Continue reading

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