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Corporate Life Insurance Settlements
Posted on October 17th, 2009 No commentsAuthor: Ross Bainbridge
Source: articleage.comLife insurance settlement is the purchase of the existing insurance policies from the policyholders at a fixed percentage of the total cash value of the policy. This can be taken advantage of by a senior citizen who thinks that his or her policy is no longer needed, or by a terminally ill person who is in bad need of money for meeting expensive medical treatment. If policy owners observe that their insurance policies are not performing well in the market, they will sell the policies to third parties generally life insurance settlement companies or brokers. The sole business of these organizations is nothing but purchasing existing insurance policies. A corporate life insurance settlement is obviously the life settlement of the insurance policies purchased by corporate employers for covering employees’ retirement plans.
The frequently used insurance by corporations is Corporate Owned Life Insurance (COLI). It is a life insurance policy purchased by a corporate employer to offset the fringe benefits of one or more employees under retirement schemes. So obviously, the corporate employer will pay all the premiums of the policy and will be the owner and the beneficiary of it. Normally employers will opt for corporate owned life insurance policies for discharging financial obligations under the employees’ retirement health benefit plan. The cash value of the policies is used by the employer for meeting the after-tax health insurance premiums for the retired employees.
However if the employee dies, the corporate employer will be in a position to cover a part or the whole amount of the plan out of the death benefit of the plan. Sometimes the amount so obtained can be used by the employer to pay the premiums on the other policies relating to other employees. If the employer thinks that the corporate life insurance is no longer needed, he will choose the option of corporate life insurance settlement with the outside parties. There are some online companies like American-Viatical.com who help the holders of corporate life insurance policies in the settlement process. The company diagnoses the true and fair market value of the policy and assists the policyholder for the smooth settlement of the corporate-owned life insurance policy. The company has not put any upper limit on the policy size of the life insurance settlement.
Life Insurance Settlements provides detailed information on Cash Life Insurance Settlements, Corporate Life Insurance Settlements, Life Insurance Settlement Loans, Life Insurance Settlement Options and more. Life Insurance Settlements is affiliated with Insurance Settlement Loans.
Article Source: http://EzineArticles.com/?expert=Ross_Bainbridge -
Life Insurance Policies
Posted on October 17th, 2009 No commentsAuthor: Peter Emerson
Source: articleage.comLife insurance is a kind of insurance policy that covers the costs after the death of the insured person. These costs include estate settlement costs, death taxes, or any charities. It is particularly meant for providing security for the insured’s dependents.
Life insurance policies are basically of two types: term insurance and permanent insurance. A term insurance policy is where the benefit is paid if the insured dies during the term of the policy. Term insurance polices can be renewed after the expiration of the policy. Some also contain a convertibility option through which it can be converted into a permanent policy. Premiums are generally small for term insurance policies. It is also difficult to get term insurance for older people, since their risk of death is greater. In a permanent term policy, the security is for the whole life of the insured. The premium is slightly higher for this policy. Other types of life insurance policies are: universal life insurance (the insured can select the premium to be paid); variable life insurance (the insured has the ability to direct the investments of the cash surrender value); variable universal life insurance, single premium life insurance (single up-front payment for the full life of the policy); and survivorship life insurance (joint insurance for two people).
There are many factors to be considered while choosing a life insurance policy. They are: the amount of insurance required, the type of insurance, affordability of the premiums, surrender charges, cash value projections, policy loans, dividends, mortality assumptions, the stability of the insurance company, and so on. Most insurance companies provide the same kind of offers. The best way to compare is to compare the premiums. If the premiums are the same, then compare the other benefits and terms and conditions.
There are hundreds of insurance companies that are offering attractive deals on all kinds of life insurance. You can contact an insurance agent for getting the right life insurance policy. The internet is also a very good source for obtaining quotes, comparing various policies and deciding on the best one.
“Insurance Policy provides detailed information on Insurance Policy, Life Insurance Policies, Car Insurance Policies, Health Insurance Policies and more. Insurance Policy is affiliated with Life Insurance Quotes.