FREQUENTLY
ASKED QUESTIONS
LIFE
SETTLEMENT
• What
is a life settlement?
A life settlement is the sale of a life insurance
policy to a third party, for a cash value that is greater than
the surrender value of the policy.
• How
much will I receive for my policy?
There are various factors that determine the amount that you
will receive for your policy. These factors include: age,
health of the client, policy size, type of policy, as well as
premiums.
• Who will be responsible for
paying the remaining premiums?
Once you sell your life insurance policy, the premiums are
no longer your responsibility. The buyer of your policy
takes over the responsibility of paying the premiums.
• Is there a limit to the size of
the policy that I can sell.?
No, there are absolutely no limitations as to the size of the policy.
• Are there any restrictions with
the payout from a Life Settlement?
No, there are no restrictions. Life settlements can be paid out in any way you
choose.
• I’m very interested, but I
still have a few questions. Who can I call?
Call the JEFF Group today. We are available to answer any questions that
you may have. Let the JEFF Group help you with all your life settlement
needs.
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PREMIUM FINANCING
• What are the requirements to qualify
for premium financing?
To qualify for premium financing, you must have a net worth of at least $1 million
(apart from your primary residence), and a minimum annual income of $200,000. In
addition, in order to obtain the actual insurance policy, you must meet underwriting
guidelines. Being in poor health or a smoker, can significantly influence
your ability to be insured.
• Is premium financing only for individual
life insurance?
No, it is also possible for premium financing to be applied to
a buy/sell agreement or to a charitable giving plan as well. Contact
the JEFF Group today to find out more information.
• What is the length of the term of
the loan?
Loans for premium financing can be 5, 10, or 15 year terms. The term length
depends on the age of the borrower, the current interest rates, and the loan
amount that is needed for the policy.
• How does paying interest on
the loan work?
You do not have to pay the interest immediately. It is possible
to roll the interest into the loan, and repay the interest with
the death benefit. You can also choose to pay a portion
of the annual interest from out-of-pocket.
• What are the out-of-pocket costs
that I will be responsible for?
There may be some out-of-pocket costs associated with premium
financing, however, they are small in comparison to paying the
annual premiums on life insurance.
• Are there any risks associated with
premium financing?
As with any financial endeavor, premium financing does involve
some risk. Interest rates can greatly affect the cumulative
loan amount. It is possible for interest rates to grow too
large. If this occurs, the cumulative loan may grow faster
than the cash value of the policy, which can result in a decreased
death benefit.
• How can I find out more about premium
financing?
Call the JEFF Group today, and let us help you with all your
premium financing needs.
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RETIREMENT
• What is retirement planning?
Planning for retirement means taking your destiny into your own
hands. Unfortunately most Americans are not saving enough
for the future. By planning for your retirement, you can
ensure that you are able to maintain the lifestyle that you
want.
• When should I start to plan
for retirement?
Now is a good time to start planning. It is never too early
to start planning for retirement.
• How much will I need when
I retire?
Studies show that in order to maintain your standard of living
after you retire, you will need at least 75%
of your pre-retirement income.
• Are there different types
of retirement plans?
There are various types of retirement plans, including 401k plans, pensions
and annuities etc. Call the JEFF Group today and let us help
you pick
out a retirement plan that is right for you.
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LIFE INSURANCE
• Do I need life insurance?
Life insurance is necessary if some person would experience a
significant financial loss in the event of your death. For
instance, if the family breadwinner, whose income totally or
partially supports his family, were to die, his death would result
in loss of income and harm for the rest of his family.
• Why buy life insurance?
There are many reasons to buy life insurance. These reasons
include: income replacement, paying off medical bills, funeral
expenses, paying off debts, mortgage life insurance etc.
• Is there a minimum amount
of life insurance that I am required to buy?
This is no minimum amount when purchasing life insurance. You
can choose to buy as much coverage as you feel
is necessary.
• What if I decide that I
no longer what want/need my life insurance policy. Is there
anything that I can do?
In the event that you no longer desire to keep your life insurance
policy, you can cash it in for its surrender value. In addition,
ask us about life settlements and premium financing.
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ANNUITIES
• What is an annuity?
An annuity is an investment contract that is sold by life insurance
companies. Annuities are guaranteed at a fixed or variable
return at a future date.
• Are annuities and life insurance
the same?
Even though annuities are offered by insurance companies, they
are not the same. Annuities do not take the place of a life
insurance policy.
• Are annuities insured by
the FDIC?
Annuities are neither insured by the FDIC, nor guaranteed by
the U.S. government. They are, however,
backed by the insurance companies that are issuing them.
• Are there risks involved
in annuities?
There are two types of annuities: fixed annuities and variable
annuities. The safety of a fixed annuity
is largely dependent on the financial strength of
the insurance company that is issuing it. As far as variable
annuities, neither the rate of return nor the principle is guaranteed. The
returns on variable annuities are dependent on the performance
of the underlying investments, as well as the market conditions.
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