Comments on: Where I Stand On The Subject Of Life Settlements! http://hinermangroup.com/blog/2008/07/17/where-i-stand-on-the-subject-of-life-settlements/ The Agency You Can Trust In Life Fri, 19 Mar 2010 10:03:28 +0000 http://wordpress.org/?v=2.9.2 hourly 1 By: Where I Stand On The Subject Of Life Settlements! http://hinermangroup.com/blog/2008/07/17/where-i-stand-on-the-subject-of-life-settlements/comment-page-1/#comment-21333 Where I Stand On The Subject Of Life Settlements! Thu, 17 Jul 2008 20:41:06 +0000 http://hinermangroup.com/blog/?p=768#comment-21333 [...] is the original post: Where I Stand On The Subject Of Life Settlements! Filed under: Articles Article tags: Articles, breast-cancer, cancer, conversion, copyright, [...] [...] is the original post: Where I Stand On The Subject Of Life Settlements! Filed under: Articles Article tags: Articles, breast-cancer, cancer, conversion, copyright, [...]

]]> By: Michael http://hinermangroup.com/blog/2008/07/17/where-i-stand-on-the-subject-of-life-settlements/comment-page-1/#comment-21332 Michael Thu, 17 Jul 2008 20:19:09 +0000 http://hinermangroup.com/blog/?p=768#comment-21332 Ed, I recently wrote a couple of blog articles on the topic of selling your life insurance to life settlement brokers. In addition to the points that you made I’ll add that people need to also consider the income tax ramifications when weighing their options. Life insurance proceeds are tax free when paid out, but life settlements are taxed as ordinary income as far as I know. The exact treatment might vary as I’m not a tax expert on life settlement taxation, but it is something to consider. I’m with you on the discomfort level associated with life settlements. The actuary in me cringes when I think about the lack of insurable interest involved with the companies that buy these things. Just because you initially sell your policy to a reputable company doesn’t mean that they aren’t going to turn around and sell it to some investor who isn’t so honest. Fortunately, I have never run across anybody having a hit put on them by a life settlement company. My articles if anyone is interested: http://gardenstatelifeinsurance.blogspot.com/2008/06/can-i-sell-my-life-insurance.html http://gardenstatelifeinsurance.blogspot.com/2008/06/consider-this-before-you-sell-your-life.html Ed,

I recently wrote a couple of blog articles on the topic of selling your life insurance to life settlement brokers.

In addition to the points that you made I’ll add that people need to also consider the income tax ramifications when weighing their options. Life insurance proceeds are tax free when paid out, but life settlements are taxed as ordinary income as far as I know. The exact treatment might vary as I’m not a tax expert on life settlement taxation, but it is something to consider.

I’m with you on the discomfort level associated with life settlements. The actuary in me cringes when I think about the lack of insurable interest involved with the companies that buy these things. Just because you initially sell your policy to a reputable company doesn’t mean that they aren’t going to turn around and sell it to some investor who isn’t so honest. Fortunately, I have never run across anybody having a hit put on them by a life settlement company.

My articles if anyone is interested:

http://gardenstatelifeinsurance.blogspot.com/2008/06/can-i-sell-my-life-insurance.html

http://gardenstatelifeinsurance.blogspot.com/2008/06/consider-this-before-you-sell-your-life.html

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