Senior Life Settlement-Uses and ApplicationsWritten by Jon Thomas
In a recent article in National Underwriter (April, 2005) a Senior Life Settlement is depicted as an ingenious financial planning option available to consumers by providing access to secondary life insurance market through life insurance valuation – a new trend, tool in financial advisory services industry unlocking opportunity for many.
Sound investment practices require diligence and regular appraisal and valuation of assets. To date insurance policies were excluded from said valuations, due to perceived absence of market for them. However, landscape, opportunity and choices open to seniors, retirees etc. faced with a life settlement issue has changed significantly and people are taking notice.
The premise and principles seem to be simple and back to basics. Simply put, it means that life settlements offer qualifying life insurance policy owners opportunity to sell policies that are no longer no longer adequately serving purpose or unnecessary, receiving significantly more than cash value for them in return. An interesting statistic from context of senior life settlement (Conning & Company), states that as much as twenty percent of all insured over age of 65 own policies with a market value exceeding surrender value.
A Senior Life Settlement may make sense for a variety of reasons:
•Premiums may be too expensive •There been a sudden change in your health condition •Your life insurance policy about to lapse shortly •You have significantly more life insurance coverage than you need •You would like to receive substantially more than policy surrender value
Building Business CreditWritten by Simon Harris
Let’s imagine that you wanted to start a business—you have a great business idea, and now all that you need is business credit so that you’ll be able to borrow money against your business without having to dive into your personal assets or personal credit. This means less risk for you, owner. Some credit reporting agencies sell a business FICO score based on both risk of business and personal credit of owner. In some instances, owner’s personal credit is linked to business credit, but it’s best to keep them separate if you can. Building business credit is completely different from building personal credit. In addition, you don’t have same credit protection laws with business credit that you do with personal credit.
There are certain keys that you can follow to help ensure your business credit gets off to a great start. Follow along as we discuss them below.
First, set up proper business structure and take basic steps to ensure your business appears stable to business credit bureaus. That means getting proper occupational licenses, corporate structure established and a business credit profile. A business credit profile helps you to build business credit without using your personal credit. Benefits in having a business credit profile are numerous. For one, you will have more cash for business, convenience in purchasing, protection of your personal assets, limiting of personal liability from business, and ability to prepare your business for future lending needs.