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Articles Archive for April 2006

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[4 Apr 2006 | No Comment | 315 views]

Sometimes senior citizens no longer need their policies which they had taken in their youth. They may not be able to pay the premiums anymore, or they may need the cash for some other purpose. Some years ago, the only options to get rid of unwanted policies were to cash them in at their surrender value, or, worse still, to allow them to lapse. Both these methods caused a serious loss to the policyholder.
But now there is a way out of unwanted policies. Unwanted policies can be settled for a cash value, which is higher than their surrender value at that moment. Settlement of a policy involves a third party which buys the policy from the senior citizen and becomes liable for all future premiums. The original policyholder, i.e., the senior citizen, gets a lump sum amount in cash.
Senior Policy Settlements are becoming hugely popular because of the direct cash …

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[4 Apr 2006 | No Comment | 346 views]

Senior Life Settlements have provided senior citizens a method to realize the financial value of their insurance policy assets before their maturities. Earlier, a large number of policies would either lapse or be surrendered by senior citizens who were unable to keep paying the premiums. But now, these policies can be settled with a buyer.
The Senior Life Settlement industry grew out of the viatical settlement industry. Viatical settlement is given to terminally ill patients, such as AIDS patients, who have a life expectancy of less than two years. However, this period cannot be considered with finality as due to medicines, the life of even terminally ill patients can be stretched beyond two years. Hence, a separate industry, i.e. the Senior Life Settlement industry, grew out of the viatical settlement industry for people having life expectancies of more than two years. Senior Life Settlements are given for senior adults who have …

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[4 Apr 2006 | No Comment | 341 views]

Senior citizens above the age of 65 years can sell their unwanted policies to other parties and get a lump sum settlement in cash. Such a Life Settlement is done when the person requires money for some urgent purpose, to invest in business or to simply fulfill some lifelong desire.
Life Settlement for seniors is usually done with brokers. These brokers help in scrutinizing the policies and then auctioning them to various interested parties. The party which offers the highest bid gets to buy the policy and becomes liable for paying all the premiums for the policy in future. They settle the policy by paying the senior citizen a lump sum amount in cash.
Selling the policy is a long but simple process if a broker is involved. First the policy has to be evaluated. For this, an application is filled out. Medical tests may or may not be necessary. Information of …

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[4 Apr 2006 | No Comment | 322 views]

Life settlement describes the sale of a life insurance policy to a third party buyer and receiving a lump sum amount in cash. When a policy is settled, the original owner is no longer responsible for paying the premiums and will not receive any amount on the maturity of the policy. But if the owner wishes to keep the policy and yet have an urgent financial need, the simple solution is to borrow a loan against the policy.
While borrowing a Life Settlement Loan, the borrower has to clearly state the reason for the financial requirement. This is not the case in settlements, as there no questions are asked about the way the money is to be used. Also, the loan will have to be repaid over a period of time, in monthly installments, as the owner will be keeping the policy. The advantage is that the policy will be still …

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[4 Apr 2006 | No Comment | 362 views]

Life Settlement Brokers make the entire process of Senior Life Settlement easier. Insurance is a highly secretive market, where the current prices of policies are not easily available to the policy holders. Brokers get this inside information, as most brokers are closely affiliated with insurance companies. Brokers also know the procedures along with all their intricacies, and can speed up the process. One more important advantage of having a broker settle a senior policy is that they can attract more bids and hence give a better choice to a buyer.
Many a times, brokers restructure the senior life policies to make them appear more appeasing to buyers. They get the forms filled in, with all policy and personal information of their client. Once this paperwork is done, they submit the forms to different buyer companies and secure their bids. These bids are then told to the policy holder so that they …

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[4 Apr 2006 | No Comment | 333 views]

A Senior Settlement Company is an establishment that buys unwanted policies from senior citizens and sells them off to other interested parties. The company becomes liable for all further premiums on the policy and its benefits, once the policy is bought by it from the original policyholder. The responsibilities of Senior Settlement Companies include buying the policy from the senior policyholder, customizing it according to present-day requirements, introducing it to interested parties and inviting bids, selling it to the highest bidder and compensating the original policyholder a lump sum amount in cash. These companies also maintain the current funds of the policyholder in an escrow account till such time as the policy is sold to someone else.
Senior Settlement Companies need to be licensed by the Departments of Insurance in their operating states. This license is for a fixed amount of years, after which it is to be renewed. Acquiring a …

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[4 Apr 2006 | No Comment | 317 views]

A Senior Life Settlement means the sale of an insurance policy to a third party at a value less than the face value of the policy. The buyer of the policy is liable to pay all future premiums on the policy, while the original holder of the policy gets a lump sum in cash. This lump sum is an amount that exceeds the cash value of the policy accrued till that date.
Senior Life Settlement is opted for by senior people (above the age of 65 years) who do not have any further intention of maintaining their policy premiums. Once they communicate with a life settlement provider regarding their policy settlement, the provider buys the policy from them and collects their premiums in an escrow account. As soon as a buyer is available, the policyholder stops paying the premium and the new buyer continues from that point on. The accumulated amount …

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[4 Apr 2006 | No Comment | 329 views]

A taxpayer may usually deduct 14 cents per mile for all miles driven on behalf of a charity (Section 170(i)). The primary purpose of the travel must be to contribute to the mission of the charity. In addition, the travel must not provide the taxpayer with any significant amount of personal pleasure, recreation, or vacation (Section 170(j)). Further, a taxpayer may not deduct the miles driven on behalf of a charity, other than a church, if the purpose of the travel is to influence legislation (Section 170(f)(6)).
For example, if a taxpayer drove her personal automobile a total of 500 miles to procure and distribute wheelchairs on behalf of a qualified charitable organization such as LifeNets http://www.lifenets.org/, the taxpayer could deduct $70.00 (500 miles x 14 cents per mile). However, if a scoutmaster took a troop of Boy Scouts to summer camp and spent a week there with them, the scoutmaster …

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[4 Apr 2006 | No Comment | 437 views]

I like most American’s complain about taxes and how the rich keep getting richer and the poor keep getting poorer. You’ve heard the arguments, the poor can’t pay taxes because they are poor, the rich don’t pay enough, and the middle class is left to pay the brunt. I complain not only as a cynic but also as a hopeful citizen that someday, something will change. I don’t wish to be seen as a socialist nor a bigot along class lines. I just want everyone to pay a fair share of the collective burden as our founding fathers intended.
Do you think the rich have paid their fair share? Do you feel that after paying taxes on several hundred thousand dollars the burden should be lessened because you’ve paid enough or more than the average amount per capita? Do you think it is fair or unfair that one person should pay …

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[4 Apr 2006 | No Comment | 318 views]

Most Americans get health insurance from their employers and never review their policy to learn the details of their health insurance benefits, dictating which medical providers they can use, and what their out of pocket expenses will be. It usually takes a health problem for the employee or a member of their family to bring the details to light, and by then, it’s usually too late.
According to Paul Zane Pilzer’s book, The New Health Insurance Solution, the lack of Affordable health insurance, and rising health care costs now consume almost one-sixth of America’s economy, and during ones lifetime, medical and health insurance costs are likely to be the largest or second largest expense after housing. That’s if a person is lucky enough to have health insurance. However, even if one has health insurance, the traditional employer-sponsored plan is likely the number one threat to an employee’s financial future.
This statement is …