I wrote in this blog about stranger-originated life insurance this Monday, and the next day Imperial Holdings, Inc., a company in the life insurance settlement business, had its headquarters in Boca Raton, Florida raided by the FBI. No charges have been filed. Life Partners, Inc., is another company in the settlement business, is also under investigation. Allegations for Life Partners focus on misrepresentations to their investors.
Regardless, seniors interested in a life settlement need to be wary of the life settlement industry. Finra investors provides an excellent overview of the issues involved.
Make sure to contact an independent agent to review all your options before signing over ownership of your policy. Ask your company for an in force illustration. Explore options such as:
1. Keeping your policy. By applying policy cash value to premiums: partial or full
2. Replacing your policy.
- By transferring cash value to a fixed premium guaranteed universal policy
- To a guaranteed universal life, using the cash surrender amount to help pay premiums
- To a term policy and using a cash the cash surrender amount to help pay premiums.
3. Assigning ownership of your policy to your beneficiary.
4. Accelerating your death benefit. If terminally ill
5. Shopping for a better deal.