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| *Ostroff, Fair and Company>>>Insurance |
Investers for spin-life? |
people paying you for your life insurance policy I have heard of it being done. It is an investment for them. They usually do it for very large policies, and for older adults, but they probably can do it for somewhat smaller ones. It would not be worth it for very small policies, though. From what I have read it goes like this: Lets say you have a $1Mill policy (whole) and you are in your 70's. You no longer have the need for the policy, but could use the cash. They will pick up the payments & you settle on an amount to get from them. Of course you transfer ownership (not just bene) to them, which I understand is legal. I dont know what the ratio is, but it probably has mortality rates involved. I am sure they check on you every once in a while & if you answer the phone they know you are still around & just hang up! lol Upon death they get payoff & split between investors. Why would they do this? Cash value life insurance, even from the top-performing companies, don't perform well enough to justify this kind of investment. Are they betting you're gonna die? Is that the bottom line? Do you want someone betting you're gonna die?!?!?!?? What is their insurable interest in you? In order to be legal, they have to show an insurable interest. It smells like a scam to me. Former life agent. |
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