Securitizing Life Insurance: Big Return for Asian Insurers as U.S. Insurers Lose Out

Thursday, September 10, 2009

In the east and west, bankers are looking to the life insurance industry to give the financial system a fresh dose of vitality. But the wildly different approaches stand to impact life insurers in equally opposite ways.

Friday, the New York Times reported that bankers are seeking to buy life insurance packages from holders who sell them at a deep discount (around 40% of the settlement value). The banks will then bundle the packages, securitize them into bonds, and sell them off to clients such as pension funds, who receive the remainder of the settlement proceeds when people with the insurance die...

Life insurance is available for elderly persons up to age 85

Saturday, September 5, 2009

Life insurance is available for elderly persons up to age 85.



Elderly persons should not purchase term life insurance. Whole life in an amount suitable to pay for burial and funeral expenses is very affordable. A $10,000.00 policy can be purchased for under $100.00 per month and with a first day, full benefit. What this means is, if you pass away tomorrow after purchasing a senior life insurance policy, the full $10,000.00 will be paid to your beneficiary.



If you have significant health problems, such as a history of heart disease or kidney problems, you may not be eligible for a first day, full benefit policy. In this case, you will be offered a graded or modified death benefit policy. These types of special insurance policies do not pay the full death benefit for 2 to 3 years after the policy has been purchased. During the 2 or 3 year period, depending on the company your purchase your policy from, only a portion of the face value of the policy will be paid. In some cases, all premiums paid into the policy plus interest will be paid to the beneficiary.



Whole life coverage for seniors is best. The monthly premium is guaranteed to never increase, regardless of health or age. The face value is guaranteed to never decrease. The cash values are also guaranteed.



If you are elderly, you can compare life insurance quotes online with special websites that allow you to see the prices that different insurance companies charge for final expense insurance . These types of websites are available for your convenience.

A Look at High Risk Life Insurance Plans

Thursday, August 27, 2009

What options are available to you for life insurance if you have health issues or participate in hazardous sports/activities. If you have difficulties qualifying based on health, there is a secondary market of high risk insurance plans that might be a back-up option. Let’s take a look at how they work.

First, how do we know if the standard term life plans are probably not an option? The answer is health class. Take a look at our term life health class page and list of requirements. If you find your health status or history does not fall within at least the “Standard” health class for one or more criteria, then the standard plans may pose a problem. Feel free to run your status by us. Take advantage of our experience and guidance as professional term life insurance agents.

So what are high risk insurance policies? The are essentially simplified issue plans that offer a limited benefit with other restrictions. They tend to be whole life in design. The whole life design makes sense with such a risky proposition to the insurance carriers for the same reason we generally don’t recommend it for standard issue policies. Whole life policies are front loaded much like a mortgage is to a bank with an increased premium going to the carrier. The insurance company can quickly collect enough with investment on the premium to offset the increased likelihood of having to pay out a claim. This is usually not a good value when compared to term life insurance as we discuss in our term versus whole life article but we may not have any choice if health dictates a high risk direction.