Senior Life Settlements-A New Financial Dawn EmergesWritten by Jon Thomas
When delving deeper into market-driven research on myriads of reasons, motivations, and/or rationales for senior life settlements – seniors selling their life insurance policies have surfaced in recent years. According to studies by key industry players, policyholder rationales for selling life policies are to be identified on one of three levels, due to a combination of them OR influencers from all three levels working together to result in senior life settlement transactions:Individual: cash-need for major expenses, outlived need for coverage, needing different coverage or features, financial distress Family / Estate: Change in beneficiaries (e.g., divorce, death of dependents), Second-to-die policyholder (i.e., spouse) has passed away, material change in value of estate Business: Change in key executives / partners, change in succession plan (e.g., family business) or needing cash / seeking to monetize assets (Source: Bernstein Research Call, Sanford C. Bernstein & Co., LLC, a subsidiary of Alliance Capital Management, 2005) Other sources (Milestone Settlements, 2004) confirm that senior life settlements appeal as solutions to individuals most likely to consider a life settlement, because they, for one reason or another, no longer need insurance they purchased. A number of reasons may include: •Seniors whom have insurance and/or estate needs that have changed, making their current policy(s) inadequate or exceedingly adequate for their current or future needs •Seniors who are not satisfied with performance of insurance product(s) they have chosen, or are aware of newer, better performing insurance products •Seniors who choose to realize value of their policy(s) now, rather than continuing to pay on a policy they will never receive benefits of •Individuals, or owners of a company, who own key man policies that are no longer needed, or elect to use sale of policy(s) to enhance a buy-out or create severance packages •Seniors who wish to live out remaining years of life without a change in lifestyle •Individuals who need capital to pay for medical treatments or procedures •Any senior who realizes that there is now a greater tangible asset value to their life insurance policy, and wishes to take advantage of this added value
| | Different Ways to Borrow MoneyWritten by John Mussi
There are many different ways to borrow money. Outlined below is a useful guide to some of most common ways of borrowing money. Loans There are many loan companies offering to lend you money. They will check your credit worthiness and may offer you a secured loan or an unsecured loan. A secured loan means that you undertake to give lender property you own if you do not keep up repayments. In return, you usually get a lower APR and longer repayment period. An unsecured loan costs more in repayments but does not carry all risks of a secured loan. Overdrafts Your bank might allow you to overdraw - that is, borrow from bank by taking out more money than you currently have in your account. You will be charged interest on your overdraft and possibly a fee as well. If you go over overdraft limit set by bank, you will have to pay a lot more. Check what bank charges for overdrafts and try hard not to go over your limit. If you do need to borrow and cannot repay amount very quickly, you might be better off with a bank loan.
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