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How is the work of premium financial life insurance?

Premium financial life insurance is not something you hear every day, mostly because there are so few people who are eligible to propagate it. Those who can qualify for this type of life insurance policy stand up to get a lot of money if all variables related to the transaction remain benefit them. Even as much as 15% of the nominal value can be seen on the return of only two short years later – without investing! With millions and millions of dollars involved in transactions, you can calculate how efficient is a 15% refund.

This is the work of premium financial life insurance. First of all you must have a net worth or insured asset value, called an insured interest, more than two million dollars. This policy has been written to $ 100 million. You register through a premium financial broker for life insurance policies and financing at the same time. If the lender approves your premium life insurance loan, you will be given premium money for the policy for two to five years or “life”, depending on what your requirements are. Clearly the insurance policy will be quite large, because there are many assets borne. Therefore premium payments will also be quite significant. This is why low flowering loans to cover this premium costs are very interesting. At the end of the two-year period you will have a legal option to sell this life insurance policy to the secondary market of 3% to 15% of the nominal value, fewer loans and interest premiums charged by lenders, and the cost of completion.

This type of setting must sound too good to be true, but it could be easy to make a big return without investing if you play your card correctly. First, you must realize that it is not just anyone who can apply for premium financial life insurance. You usually have to be at least 69 years old but no more than 85 even applies. If you meet this requirement and approved for loans and policies, you must live through a two-year payment period to have the opportunity to sell the policy to the secondary market. If you die before a two-year sign, your beneficiary will receive a nominal value of policies reduced by premiums and interest charged by the lender. Example: assume a five million dollar policy with an annual premium of $ 350,000 and a 10% interest rate. Beneficiaries receive $ 4,230,000 if a senior pass on a sign of two years.

Obviously, life insurance companies realize what is meant by premium financing and has added that anyone who wants to apply for a decent need. They might request a real estate plan. Insurance companies are also unhappy when life insurance policies are sold to the secondary market because then the policy becomes much less likely to hose. Insurance companies rely on insurance policy deviations to maintain high income. This is because if the policy holder allows its policy to hose, insurance companies must keep all premium money that has been paid reduced by every accrual benefit that has a cash value. When all high profile life insurance policies are guaranteed finally payment, of course make tension in an insurance executive bag.

It is estimated that for these reasons, insurance companies can soon find ways to make premium financing less available and interesting. Already, during the emission guarantee process they will ask for a senior if someone talks with them about selling their policies in two years, and if the answer is “Yes,” the company will not bear the policy. But for now the buzz of the possibility of investment dollars is being heard hard and clearly on Wall Street, and interest in the purchase of secondary markets and sales of life insurance policies grow rapidly. Lenders such as Goldman Sachs found this an interesting area, and investors like Warren Buf

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