There are many kinds of life insurance and one of the most favorable ones is index universal life insurance. This indexed insurance your premium dollars will not be invested to general investment account. It will pay interest based on upward movement of stocks market. Here are the pros and cons of having this index universal life insurance.
The whole pros and cons can be found at http://www.lifeinsuranceblog.
The disadvantage of this index universal life insurance is too many assumptions about the policy. It happens because the insurer has discretion to change caps of interest rate, participation rate, and insurance almost at any time. But, it is still very potential as you also get the flexibility in managing the insurance. If you are interested to know more you only need to visit the site.
A viatical settlement or often referred to as Life Settlement is when the holder of a life insurance policy is considered terminally or chronically ill sells their life policy to a willing buyer. The buyer pays the insured party a lump sum that is more than the cash surrender value, but less than the death benefit. The buyer will also pay the monthly premiums for the remainder of the policy. When the insured policy holder passes away, the buyer can then turn in the life insurance policy for the entire value.
How is Someone Classified as Chronically or Terminally Ill?
A person is considered chronically ill if they:
-Cannot perform two basic daily activities (eating, using toilet, dressing self, bathing, etc.)
-Needs supervision for safety due to being cognitively impairment.
-Have a disability recognized by the US Secretary of Health and Human Services.
A person is considered terminally ill if they:
-Have a condition that gives them a life expectancy of two years or less.
-May be a good option if you are the holder of a life insurance policy and find that you are terminally or chronically ill. If you have no children and your family is well off, there may be no reason to let the money earned in the death benefit go to waste. If you sell your life insurance policy to a willing third party, you can use the lump sum of money the buyer pays as you see fit. By doing this, you can prepare your own funeral arrangements and ensure that they are paid for. If there is any money left over, you may use it for a vacation or other ways to improve your quality of life. The stress of making the payment of the monthly premium is taken off of your hands.
-If you are looking to purchase an insurance policy, this could be a great investment if you purchase the policy at the right time. You can earn several hundred or thousands of dollars buy spending a smaller portion of money upfront. You may want to think about it or speak to a settlement provider before purchasing an insurance policy from someone. You could end up losing money if you purchase the policy and the price of the lump sum paid upfront and the cost of the monthly premiums exceeds the amount of the death benefit.
If you are interested in a viatical settlement as either a buyer or a seller, it would be in your best interest to talk to a professional to make sure that everything is handled in a beneficial and legal manner