- My Forums
- Tiger Rant
- LSU Recruiting
- SEC Rant
- Saints Talk
- Pelicans Talk
- More Sports Board
- Fantasy Sports
- Golf Board
- Soccer Board
- O-T Lounge
- Tech Board
- Home/Garden Board
- Outdoor Board
- Health/Fitness Board
- Movie/TV Board
- Book Board
- Music Board
- Political Talk
- Money Talk
- Fark Board
- Gaming Board
- Travel Board
- Food/Drink Board
- Ticket Exchange
- TD Help Board
Customize My Forums- View All Forums
- Show Left Links
- Topic Sort Options
- Trending Topics
- Recent Topics
- Active Topics
Started By
Message
Life Insurance on another person
Posted on 4/16/10 at 11:16 am
Posted on 4/16/10 at 11:16 am
Any agents in here? I have a few questions. 
2
Posted on 4/16/10 at 11:18 am to I Love Bama
Not an agent but I'm licensed. What's your question? I'll try and answer if I can.
Posted on 4/16/10 at 11:40 am to LEOtheLION
quote:
What's your question?
I got a question, although rather twisted. Why don't people pay for their parents life insurance and treat it as an investment? I mean, you could get a million dollar policy on your mom and pay the premiums for her and when she kicks the bucket, you collect. You will never lose money
Posted on 4/16/10 at 11:45 am to HeadyMurphey
quote:
I got a question, although rather twisted. Why don't people pay for their parents life insurance and treat it as an investment? I mean, you could get a million dollar policy on your mom and pay the premiums for her and when she kicks the bucket, you collect. You will never lose money
They do. You can even set up an insurance trust to buy term life on someone.
Posted on 4/16/10 at 12:30 pm to John Merlyn
quote:This is true. It's just that most term life policies get extremely expensive when the person becomes advanced in age. I'm involved in a lawsuit involving a $2 million policy that an investor took out on one of the principles of company that he bought. The premiums were $6250/yr, but when the principle turns 71, they bump up to $76,810/yr. The premiums continue to rise annually by about 17%. When the principle reaches 75, for example, the annual premium is $140,000. Those numbers depend on the sex, health, lifestyle, etc. of the insured. You can still make money on the deal, but there is some real risk involved.
They do. You can even set up an insurance trust to buy term life on someone.
Posted on 4/16/10 at 12:38 pm to HeadyMurphey
Also, Estate tax questions come in to play. Like noted earlier - If the estate is valued at more than 3.5 million a trust would need to be set up.
And it seems like up to 1 million dollars can qualify for the lifetime gift exemption? ? ?
This is why I read this board. I think I forget more than I learn these days.
And it seems like up to 1 million dollars can qualify for the lifetime gift exemption? ? ?
This is why I read this board. I think I forget more than I learn these days.
Posted on 4/16/10 at 12:45 pm to I Love Bama
I know how this is going to sound but I really don't care. I know a guy that is strung out on drugs in a bad way (I've helped send him to rehab). Can I take a policy out on him?
Posted on 4/16/10 at 12:50 pm to I Love Bama
quote:
I know how this is going to sound but I really don't care. I know a guy that is strung out on drugs in a bad way (I've helped send him to rehab). Can I take a policy out on him?
Probably, but that would be rather expensive. Where you would really luck out is having him name you beneficiary of an existing policy. Pay him in cash or you could run into some problems later.
Posted on 4/16/10 at 1:26 pm to I Love Bama
quote:
I know how this is going to sound but I really don't care. I know a guy that is strung out on drugs in a bad way (I've helped send him to rehab). Can I take a policy out on him?
Wouldn't you have to have some type of relationship with him other than "a guy I know"? Don't you have to be family? I wouldn't think you could just take out a policy on some random person and set yourself as the beneficiary.
Posted on 4/16/10 at 1:33 pm to MikeBRLA
has to be an insurable interest. that is why stoli policies are no more.
eta. stranger owned life insurance
eta. stranger owned life insurance
This post was edited on 4/16/10 at 1:34 pm
Posted on 4/16/10 at 1:39 pm to BigErn
So is the key what the intention was at the time the policy was taken out? What about all the aids settlements.
Posted on 4/16/10 at 1:47 pm to John Merlyn
have to establish an insurable interest for a policy to be taken out.
are you talking about a viatical settlement?
quote:
What about all the aids settlements
are you talking about a viatical settlement?
Posted on 4/16/10 at 1:51 pm to BigErn
quote:
have to establish an insurable interest for a policy to be taken out.
Once a policy has been taken out, does the policyholder not have the right to sell it.
quote:
are you talking about a viatical settlement?
Yes
This post was edited on 4/16/10 at 1:52 pm
Posted on 4/16/10 at 2:02 pm to John Merlyn
i have yet to meet someone who took out a life insurance policy hoping he would get aids in order to later sell his policy.
LINK
Posted on 4/16/10 at 2:14 pm to BigErn
quote:
i have yet to meet someone who took out a life insurance policy hoping he would get aids in order to later sell his policy.
What I was asking you is this. If I was to buy life insurance with no intention of selling it, and then later decided that I needed the money, would I legally be allowed to sell it.
Was just referencing the viaticals as an example.
Posted on 4/16/10 at 2:16 pm to HeadyMurphey
quote:
I got a question, although rather twisted. Why don't people pay for their parents life insurance and treat it as an investment? I mean, you could get a million dollar policy on your mom and pay the premiums for her and when she kicks the bucket, you collect. You will never lose money
You can definitely lose money if the parents sticks around long enough. But I know of someone (an agent, in fact) who knew his mom was a raging alcoholic and took out a $10M policy. He collected about three years later.
And four years later he had blown it all on expensive cars, a big house he couldn't really afford, trips to Vegas, etc. Served him right. The day she died, the f@cker took her credit card and bought three new suits, too. Some people are pretty sick.
Posted on 4/16/10 at 2:21 pm to foshizzle
He got a $10,000,000 policy on an alcoholic? Damn, what were the premiums?
Posted on 4/16/10 at 10:27 pm to John Merlyn
quote:
He got a $10,000,000 policy on an alcoholic? Damn, what were the premiums?
No idea, I helped settle the estate but I don't know what happened before she died. I do know he was an agent himself and probably knew how to play the game to his benefit.
Sadly for him, he was always looking for a free ride and didn't know how to hold onto the payout.
Page 1 of 1
Popular
Back to top
Follow TigerDroppings for LSU Football News