Don’t let your search for affordable life insurance in the talk about of Connecticut cause you to vulnerable to fraud. If you are contacted to acquire a life insurance policy and then immediately sell it, think twice. You might be the goal of your insurance scam.
The National Association of Insurance Commissioners and the Connecticut Insurance Department want policyholders to keep yourself updated that the sale of life insurance insurance policies are being perpetrated illegally.
Affordable Guaranteed Issue Life Insurance In Connecticut
A little backdrop: Insurance firms provide for the offering of life insurance policies. There are two types of sales and they are called life settlements and viatical settlements.
– Life Settlement deal occurs when the owner of a life insurance plan provides it to an authorized. The third party now becomes the owner/beneficiary of the coverage. The new owner must pay the premiums and thus will collect the power when the original policy owner dies (as the original policy owner is still the ‘insured’).
– Viatical Settlement: Viatical negotiation is similar to the life settlement deal, except the original policyholder is terminally ill.
Why, you might ask, would sell his or her life insurance coverage anyone? There are multiple reasons; one of them being financial. In the event the insured is operating into financial difficulty, they may sell the insurance policy to a third party for the money compensation. That is a legal practice and these policies may be sold through a life insurance broker. The 3rd party (buyer) pays the brokers commission.
Than selling an insurance plan rather, policyholders can exercise the accelerated fatality benefit provision with their policy, which could pay a large amount of the policy’s loss of life benefit. Additionally, the money value of any life policy can be used as security in finding a loan from a loan company or financial institution.
Don’t let unethical people talk you into investing in a life plan and immediately offering it. If this does occur, it is important to contact the Connecticut Insurance
Department immediately. Usually do not become a victim.