Life Insurance For Seniors-New Financial Approaches

clipped from www.life-senior-insurance.com

How is this possible?

The answer is that tantamount to premium financing, wherever the funders are dealing with mortality rate spreads, the institutional folks are also calculating these comparable spreads when it concerns immediate annuities.

This can appear labyrinthian, but it’s actually similar to the stock market option biz. One party believes the stock will go higher,and the other opines the direction is downward.

If you are between 70-85 years old, you might qualify for an immediate annuity that compensates you each month for… Continue reading

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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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Ah. You seniors.

Life insurance. Who needs it? Should you obtain life insurance?

Well, there’s no income issues per se, nor are there typically business concerns for the senior. There is a major concern for wealthy seniors, however, and that is Estate Taxation.

If you have an estate in excess of $2,000,000 in 2008, and you pass on, your estate will be taxed at a 45% rate on everything above the $2,000,000. So, as an easy example, suppose your estate is $10,000,000. $10,000,000 minus your $2,000,000 exclusion equal $8,000,000. Tax on the $8,000,000 at 45% is $3,600,000!!!! Now that you are sick to your stomach, there is a way to pay for this with little or no financial outlay.

Premium financing gives the senior… 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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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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An immediate annuity for seniors whereby the senior never had to put up a dime or offer any collateral?

My mind went blank. I was in total shock. How could this be, I asked?

Well the answer was that like premium financing, where the funders are looking at mortality spreads, the institutional boys are also looking for these same spreads when it comes to immediate annuities. This may seem complex, but it’s 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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