Stranger-Owned Insurance Impacts Insurance Companies

Stranger-Owned Insurance Impacts Insurance Companies

What are the impacts on life insurance companies because of stranger-owned life insurance? There is some debate as to what the bottom-line impact will be to life insurance companies, which also varies from company-to-company.

Straight Answers to Six Tough Insurance Questions

straight answers to seven tough insurance questions

We give you straight answers to your toughest, and some of the most common, questions about life and health insurance. How does high blood pressure impact life insurance underwriting decisions? In the vast majority of cases, having high blood pressure doesn’t mean you’re out of luck for life insurance. The premiums may be higher than […]

What Is Insurable Interest?

If You Die While the Policy Remains Contestable

Insurable interest means that the person who is purchasing the policy has more to lose than to gain by the insured’s death and therefore may purchase a life insurance contract on somebody else’s life. This is intended to prevent a person purchasing a policy unknowingly on another person for purposes of wagering, planned murder, or any other reason.

What Is a Conditional Receipt or Temporary Life Insurance?

5 Items to Consider Before Buying a Guaranteed No-Lapse Universal Life (GUL) Insurance Policy

A conditional receipt binds your life insurance coverage effective on the date of your application (the exact conditions vary a bit from company to company), provided that you are eligible for the coverage applied for. If applicable, you will receipt after your application has been taken and you have paid the initial premium payment.

What Is Private Placement Life Insurance?

private placement life insurance

Private Placement Life Insurance Products (PPIP) are non-registered Variable Universal Life (VUL) policies and Variable Annuity (VA) contracts that are offered exclusively to high net worth individuals. They have been referred to as a “hedge fund in a life insurance wrapper.”

What Are the Risks Associated With Premium Financing?

What Is the Risk Associated With Premium Financing?

Like any other financial investment, there are risks associated with a premium-financing arrangement. One risk alone – or in combination with another – could cause the entire program to fail. This is why it is advised to be aware of them before making a decision.

What Is Premium Financing In the Life Insurance World?

premium financing life insurance

Premium financing has been around for years in the life insurance industry and has been heavily promoted, especially among wealthier clients. This arrangement involves an outside – third party – lending sources like a bank or hedge fund paying the premiums on a life insurance contract. The unique characteristics of premium-financing arrangements are: · The […]

Strangers Profiting From Your Death Benefit

Strangers Profiting From Your Death Benefit

What are the impacts on life insurance companies because of stranger-owned life insurance? There is some debate as to what the bottom-line impact will be to life insurance companies, which also varies from company-to-company.

What Is Stranger-Owned Life Insurance?

Strangers Profiting From Your Death Benefit

Stranger-owned life insurance (STOLI) is exactly as it sounds – life insurance originated by a stranger. Typically, they are initiated by a third party looking to own and control a policy from the beginning. When reviewing a STOLI transaction, there are certain issues to keep in mind.