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.
Against this background, more and more produced his "niche" for companies that offer while longer, but these deals are with the promised payments usually unsecured, that is burdened with the risk of default. Since the company terminate the life insurance policies generally, and the redemption value is immediately obtainedworked with this capital and the policyholder receives the contractually elongated monthly payments.
For some companies the BaFin (Federal Financial services) has already intervened, particularly when violating the Banking Act (Banking Act).
Nevertheless, most online companies are traveling, buying life insurance but with the risks described. The contracts are often for the customer or not is not immediately evident, the failure to elucidate the risks and the false confidence because of lack of money, einzubezahlen the unwillingness on the insurance, etc. were not adjusted the perspective of contract rarely.
They should face such offers very critical. This is especially if the purchase price or a large portion of the purchase price until the future is to pay you. Further, if the promised payments are significantly higher than the cash surrender value. Along with these promises of high returns with statements as 7% or more a year.
Before entering into a transaction can only advise the signatory in advance in detail the contracts and the risks to consider. An experienced lawyer can make you this offer. Have you signed such a contract and they have already received so far low percentage of payments under the contracts can also advise you of the signatories, only to immediately turn to an experienced lawyer. The risk that your money is lost by withdrawing flow in the future any more payments are not to be underestimated. And the monthly contract performance with previous (low) represents no security payments dar. peace and serenity regarding such a matter, you can gain only if either no risk or should have received all payments.
