It looks like one of the things that has always been seen as a “sure thing” could be coming back to bite investors. Life insurance companies have been offering policies to people for years and premiums often go up as the insured begins to age.

An investment scheme that has popped up in the last few years is when someone who is insured can no longer afford the premiums or is looking to “cash out” a life insurance policy that he or she has been paying on, someone will come along and buy it for a fraction of the payout and sell it off to investors who will pay the premiums until the original insured person dies.

There have been over a dozen life-settlement scams to come under investigation since 2008. Life settlements get capital by promising high returns. The business also gains the attention of other senior citizens who have empathy for the policy holders that have looked to cash out. And so, there have been a lot of companies ready to take advantage of those people.

Like when the market for securities became bloated and backed by homes created the subprime mortgage mess, the market for life settlements has created a surge in fake insurance policies called STOLI’s or stranger-originated life insurance. These STOLIs are illegal and begin with a life insurance agent who is also a life-settlement broker. The agent talks a senior citizen into taking out a big life insurance policy and wines and dines them. Then the agent agrees to pay the premiums and the ownership of the policy is transferred to investors.

Again, the problem with these STOLIs is that they are illegal and could endanger the policyholder from being able to collect any insurance in the future. Some scary statistics are that more than 50% of life settlements right now were on policies that were less than 4 years old. The reason for the increase and the large amount of settlements on policies that are less than 4 years old is the STOLIs. These policies equal out to huge losses for the insurance companies also and could potentially hurt the insurance companies to the point where they are unable to pay out real insurance claims.

It appears as though the government is taking note. Last month Senator Herb Kohl led up a special committee on the problems associated with life settlements. The committee meeting ended with the IRS and SEC being contacted to talk about gaps that are left in legislation in life settlement procedures. The SEC has agreed to look into the issues facing the industry. Due to this activity, it seems as though the market has cooled down a bit.

Having a life insurance policy is an important part of making sure that your loved ones are taken care of when you’re gone. Looking into getting a policy can be a daunting task that you may feel overwhelmed by.

It doesn’t have to be though. There are plenty of companies that have services to compare rates where you can get term life insurance quotes as well as other types of insurance quotes to ensure that you’re getting a good rate for your coverage level.

Many life insurance companies offer all kinds of policies that cover everything including term life insurance, whole life, universal, key man, second to die, group policies, mortgage and smokers insurance. A member of their team can give you an idea of what kind of service you will need and can give you an online quote just by filling out a simple form.

Getting a term life insurance quote is quite simple. It’s nearly as painless as getting a car insurance quote or going to an insurance company to get any kind of insurance.

Life insurance is something that you can never be too young to get. Just make sure that you are going with a company that has good business practices and check with the BBB and other reporting agencies to make sure.

It appears as though one of the items that has forever been seen as a “cinch” could be coming back to crunch into investors. Life assurance corporations have been offering policies to individuals for years and premiums repeatedly increase as the insured starts to get older.

An investment ploy that has showed up in the most recent few years is when a person which is insured cannot come up with the money for the premiums or is trying to “cash out” a life insurance policy which he or she has beenpaying for, a person will come by and procure it for a fraction of the payout and sell it off to investors who will pay the premiums until the original insured person dies.

There have been over a dozen life-settlement scams to come under investigation since 2008. Life settlements obtain assets by promising high returns. The business also gains the attention of other senior citizens who have empathy for the policy holders that have looked to cash out. And so, there have been a lot of corporations prepared to take advantage of those individuals.

Similar to at which time the market for securities became overstuffed and backed by houses created the subprime mortgage chaos, the marketplace for life settlements has produced a jump in counterfeit insurance policies titled STOLI’s or stranger-originated life insurance. These STOLIs are unlawful and start with a life insurance representative who is also a life-settlement insurance broker. The representative talks a senior citizen into accepting out a large life insurance policy and wines and dines them. After that the representative agrees to forfeit the premiums and the possession of the policy is transferred to investors.

Once more, the issue with these STOLIs is that they are unlawful and may possibly cause danger to the policyholder from being capable to gather any insurance in the future. Some frightening figures are that in excess of 50% of life settlements at present were on policies which were below 4 years old. The cause for the jump and the huge amount of settlements on policies which are under 4 years old is the STOLIs. These policies come out to colossal losses for the insurance corporations also and could potentially impair the insurance corporations to the mark where they are incapable to disburse authentic insurance claims.

It looks like the administration is taking a log. Last month Senator Herb Kohl headed up a unique commission on the challenges connected with life settlements. The commission assembly ended with the IRS and SEC being contacted to deliberate regarding gaps that are missing in legislation in life settlement actions. The SEC has decided to look into the issues facing the industry. Due to this activity, it seems as though the market has cooled down a bit.

Do you avoid places and situations where you are pressured to buy something?

Question:

There are a lot of places out there that are hurting for sales. The problem has gotten to be where I know that I avoid places that use high pressure sales tactics like the plague. Do you ever try to avoid these places and what would you do to change them?

Answer:

I believe that people are inherently turned off by high pressure sales tactics. No one wants to be pressured into buying something they aren’t ready to buy or get into a situation where they feel bad for not buying something (I do this sometimes). Nor do they want to get into a situation where they feel as though they have to get a credit card. So, if someone feels as though they have had an overly pushy sales person, they are much less likely to return to the store. This is just my opinion though.

Even passive sales pitches are something that irks me a little. Here’s a real example of what I’m talking about:

After Chris and I got married my insurance company sent us a card to congratulate us. I thought it was so thoughtful, until I opened it up and it said, “Congratulations! Have you thought about getting a life insurance policy?” This company has been pushing the life insurance policy on me for 5 years, and I’m not going to change my mind this time.

I think that a lot of places need to realize that when someone is shopping, they really do have something in mind. As a good sales person you can lead them in the direction they need to go or open them up to ideas that they may have not thought of, but pressuring them into buying something they don’t want is not going to win you any brownie points.

It looks like one of the things that has always been seen as a “sure thing” could be coming back to bite investors. Life insurance companies have been offering policies to people for years and premiums often go up as the insured begins to age.

An investment scheme that has popped up in the last few years is when someone who is insured can no longer afford the premiums or is looking to “cash out” a life insurance policy that he or she has been paying on, someone will come along and buy it for a fraction of the payout and sell it off to investors who will pay the premiums until the original insured person dies.

There have been over a dozen life-settlement scams to come under investigation since 2008. Life settlements get capital by promising high returns. The business also gains the attention of other senior citizens who have empathy for the policy holders that have looked to cash out. And so, there have been a lot of companies ready to take advantage of those people.

Like when the market for securities became bloated and backed by homes created the subprime mortgage mess, the market for life settlements has created a surge in fake insurance policies called STOLI’s or stranger-originated life insurance. These STOLIs are illegal and begin with a life insurance agent who is also a life-settlement broker. The agent talks a senior citizen into taking out a big life insurance policy and wines and dines them. Then the agent agrees to pay the premiums and the ownership of the policy is transferred to investors.

Again, the problem with these STOLIs is that they are illegal and could endanger the policyholder from being able to collect any insurance in the future. Some scary statistics are that more than 50% of life settlements right now were on policies that were less than 4 years old. The reason for the increase and the large amount of settlements on policies that are less than 4 years old is the STOLIs. These policies equal out to huge losses for the insurance companies also and could potentially hurt the insurance companies to the point where they are unable to pay out real insurance claims.

It appears as though the government is taking note. Last month Senator Herb Kohl led up a special committee on the problems associated with life settlements. The committee meeting ended with the IRS and SEC being contacted to talk about gaps that are left in legislation in life settlement procedures. The SEC has agreed to look into the issues facing the industry. Due to this activity, it seems as though the market has cooled down a bit.