Practice Areas: Banking and Investors Law, Investment Law
Legal Tip of 10/07/2011
When bidding for the purchase of life insurance great caution. The offers promise in most cases a higher payment than the insured with their insurance company over the redemption value, etc. would get. The consideration i.e., the payment for the assignment of life insurance is not acted upon immediately and completely and accurately in most cases it is a high risk of a default risk. The payment of the purchase price will often be paid monthly stretched over many years. A security for future payments is not in most cases.
Some background may be mentioned that there was serious business and there, buy the life insurance. This market is for 3 to 4 years, dropping considerably, since the market has disappeared for resale to a large extent. This means that is purchased by a reputable company, not every life insurance. A reputable company immediately paid the amount paid for the assignment of life insurance. By the way it should be mentioned that these companies generally do not terminate the insurance but they operate with additional premium payments. As the only other alternative is left as the policyholder's life insurance fees prior to the end of its life insurance contract back through termination. The preservation of the so-called surrender value but often is not necessarily a "good deal" for the policyholder.
