Posts Tagged ‘Life Insurance’

Settlements and Life Insurance Companies

When you take out a life insurance policy, there is little to be concerned about, right? All you need to do is day the premiums as required. In the case of your unfortunate passing, your family can then file a claim. In a sense, this rather simplified explanation would be an accurate one. However, there are other phases to dealing with life insurance companies that the aforementioned scenario. You have the option of taking part in a life insurance settlement plan.

If you are not completely familiar with how life insurance settlement plans work, you probably are not alone. Life insurance companies do not have a long and storied history of being involved with these deals. They have become popular in recent times and, for those looking to a unique and novel way of investing their money, settlements might be worth exploring.

What is a life insurance settlement?

A life insurance settlement is when someone invests in another person’s life insurance policy. The way this investment works is the investor will outright buy the life insurance policy from the holder. The investor then acquires all the death benefits on the policy. The buyer of the policy will have to make all the remaining premium payments on the policy. If not, then the policy would default and the investor would not be able to recoup the benefits when the person on the policy passes away.

What would be the benefit here for the person on the policy?

Basically, the person would get a nice, lump sum payment in advance of his/her untimely passing. Usually, the investor would purchase the policy for 40% or less of the payout amount. So, if the policy was for $250,000, the person that originally purchased the policy would receive $100,000. The benefits to the investor are obvious:  he/she would make a huge profit once the life insurance policy is collected upon.

Now, not everyone is in the position to seriously think about selling a policy. Generally, the policy is best sold by someone that is up in age and has an illness that will soon claim his/her life. While it may be morbid to think of such things, there might also be pressing financial issues that selling the life insurance quickly could care for.

If someone feels they would benefit by selling their policy, then they should reserve the option to make such a sale. Doing so might turn out to be a wise course of action to take which is why so many serious are considering it and a large number of people have already done so.

Asking the Right Questions of the Life Insurance Companies in Your State

Life insurance companies are there to help. Granted, you do have to pay for the policy but the value you gain from the policy certainly can prove to be great help. Unfortunately, if you pass away, your family will be left with a number of financial burdens. A good life insurance policy can certainly provide at least some of the financial security required to weather monetary issues the family will have to deal with.

Most are well aware of the value of a policy, however, they might not be fully aware of how to work with the provider. Honestly, as long as you know what the right questions to ask the life insurance companies in your state, you will be able to direct your attention towards getting the best policy.

One of the most obvious questions to ask would be what are types of policy the company offers. There will be scores of different policies available. The key is determining the best one for your family and this process starts with asking the insurance companies about what policies they offer.

The second most important question to ask would be to inquire about how much coverage is available. The amount of coverage offered will vary depending on the type of policy sought. You certainly will want the right amount of coverage to care for your family and their various costs. It would be best to discuss how much coverage is necessary with a representative from the insurance company. A bit of careful deliberation may be required to arrive at the right figure and the representative will surely help with this.

While it is true the insurance company wants to make a profit (and it has to in order to payout on any policy claims), the company also wants to be sure that anyone signing onto a policy is making the right decision and getting the best coverage for their family. Asking the right questions about the types of policies and how much coverage are available will help with this cause.

The History of Colonial Penn Life Insurance is a Good One

Would you want any ambiguity with a life insurance policy? Would you want terms on a policy that can be changed on the whim of the provider? Obviously, if you have a serious interest in protecting and preserving the health and welfare of your family, you will want to acquire a life insurance policy that will assuredly deliver on all its promises. This is why Colonial Penn might be among the best life insurance companies to select. Colonial Penn has a long lasting tradition of providing for the needs of those it ensures.

This is not to say that other insurance companies are thoroughly lacking in honesty or integrity. Scores of other providers exist in the industry. You will, however, have to select one provider and you do not want to pick a provider that might end up faltering when the time comes to collect. Dishonesty might not be the reason why the provider falters. The government both on the federal and state level have many rules in place preventing a provider from cheating those it issues a policy with. However, problems with bad management can arise. If a life insurance provider runs into problems associated with fiscal insolvency, then a large number of people that are covered under the policy will find themselves in a very precarious situation.

That is to say the beneficiaries might not be able to collect.

With Colonial Penn Life Insurance, problems of this nature are really not likely. This is an insurance company that has been in business for 50+ years. Over that time, the company has discovered what is required to effectively run operations and ensure that all those covered by a policy can feel confident their loved ones will be able to collect when the unfortunate time arises.

This is not to say it is impossible that Colonial Penn could run into trouble. However, the odds of such an outcome occurring would be very low. Colonial Penn simply is a very well run service and has been well run for over five decades. For this reason alone, many will gravitate towards Colonial Penn, and understandably so.

Of course, there are various other reasons why someone might be seriously interested in looking closer at the policies offered through the company. Among those reasons would be the fact benefits do not decline over the life of the policy. There will be no medical exams required to be approved for the policy. Guarantees will be in place to prevent the rates from going up. Right after the initial year, the policy will grow in value.

Yes, there will be scores of benefits associated with signing onto a policy with Colonial Penn. If such benefits were not present, then the company would not have survived for so many years. All you have to do is look at the company’s long track record of paying out to policy holders for proof of the positive nature of doing business with Colonial Penn.