|
|
 |
- This program seems too good to be true. How is it possible for me to obtain such substantial benefits with no cost or personal guarantee and still realize a benefit if the policy is sold?
The development of the secondary life insurance market (life settlements) has enabled us to take advantage of multiple competitive bids for existing life insurance policies from many licensed sources. The applicant's trust may receive a lump sum payment over the amount of the loan and related fees upon the successful sale of the policy after a period of not less than 24 months.
- What is the downside?
If the total amount of life insurance issued equals the applicant's insurable net worth, the applicant and others who are able to purchase life insurance on the applicant may be unable to obtain additional life insurance coverage on the applicant. If the applicant's insurable net worth increases, additional life insurance may be available.
- The applicant already has life insurance. Why does he or she need this program?
This program gives the applicant the possibility to derive financial benefits for the applicant, the applicant's family or the applicant's favorite charity, without any effect on the applicant's existing life insurance and with no out-of-pocket expenses.
- I have adequate assets - why should I bother with this program?
We see no reason why anyone who qualifies should not consider this program. Please consider that the applicant can choose any beneficiaries - children, family, friends, those in need or a favorite charity. We will work with the applicant's advisors to review every detail to customize the program to the applicant's needs.
- Does the applicant have to put up any personal collateral?
No. The newly issued life insurance policy is the only collateral required.
- Are the life insurance companies and qualified lenders utilized in the specialized Premium Loan Program highly rated?
Yes, our program is designed to work with only the premier life insurance carriers in the industry. Qualified lenders offering the program vary from some of the nations largest FDIC household banks to large financial firms and institutions. Interest rates may differ from bank to bank.
- Is there a maximum cap on the premium amount?
No, there is no cap on the premium amount that can be covered under the financing program.
- What is the interest rate associated with the program?
The interest rate on the finance package may vary from bank to bank however, the interest rate is usually between 9-12% depending on the bank and the case.
- Why should an applicant evaluate this now?
If an applicant qualifies today, we can immediately begin work to confirm that the applicant has the insurability that will allow us to lock in a policy at no cost to the applicant. No one can predict whether the applicant will still have that insurability tomorrow or even a year from now.
- Who are the beneficiaries of the insurance policy?
The insured can name anyone or any entity as the beneficiary of his or her policy.
- Can the insured change his/her beneficiary?
Yes, the insured can change, pick and choose anyone or any entity as his/her beneficiary anytime during the term of the program.
- How can I use this program to benefit charity?
Under the terms of the program, if the applicant passes away before the end of the 24 month loan period, the beneficiaries will receive the net death proceeds from the policy after the limited liability company first pays off the loan and related fees. If the applicant has named a charity, it would receive these proceeds. In addition, the program allows you to contractually provide that a charity will receive the profits from any sale of the policy after the 24 month period.
- Are there any restrictions on how the insured or his/her beneficiaries spends the proceeds of the sale, or the benefits from the maturity of the policy?
No, there are no restrictions on the funds collected from the life insurance policy.
- How is this program affected by the recent legislative measures regarding charity owned life insurance?
As many charities and planned giving directors are aware, Senate Finance Committee Chair Chuck Grassley and ranking minority member Max Baucus have introduced a bill to amend the Internal Revenue Code of 1986 to impose excise tax on amounts received under certain insurance policies in which certain exempt organizations hold an interest. Under the terms of the program, the charity never owns the life insurance and shouldn't be impacted by this bill.
- How long does the process take?
Anywhere from two to six months.
|
|
|
Wealth Acceleration Group
PO Box 22594 *
Kansas City, Missouri 64113
Phone: 316-650-0001
Fax: 816-442-7902
jay@waginsurance.com
| Loans for life insurance are better served for clients age 70 and above and in good health. Clients from all states are applicable. Some
clients do not qualify. The Wealth Acceleration Group believes life insurance is best served as a long- term estate planning tool to satisfy estate taxes,
estate equalization and business succession planning. If the estate tax laws change in your favor and you no longer need the policy, you
can liquidate the life insurance policy for a living benefit by selling the asset to a financial institution on a secondary market for an
average of 29% face value (researched by Life Policy Dynamics in Washington D.C.). The Wealth Acceleration Group, LLC does not engage in
the practice of law or accounting or give legal, accounting, tax or actuarial advice. For such advice, please consult your advisor(s).
Clients may not receive a new life insurance policy with the intent to sell that policy. |
|
©Copyright WAG 2007 |
|
|
|
|
