Mr Tan
I saw your page about selling a life insurance policy to an investment company for a higher surrender value.
Is it legal?
Will the investment company make a big profit when the policyholder dies? Can they keep the profit?
REPLY
The sale of life insurance policy is quite common in some countries. It is legal. If not, the authoirty would have stopped it.
The investment company intends to pay the premium and collect the maturity benefit. They are not likely to know if the policyholder had died before the maturity date. If they do, they are entitled to keep the death benefit even though it is higher than the surrender value.
If the policyholder surrenders the policy to the insurance company, the policy is terminated and the insurance company will not pay any death claim.
If the policyholder sells the policy to the investment company for a higher surrender value, the policyholder can be considered as "terminated" as far as the policyholder is concerned.
If you are interested to know more about the sale of a life insurance policy, visit this website:
www.tklcloud.com/tlp
I saw your page about selling a life insurance policy to an investment company for a higher surrender value.
Is it legal?
Will the investment company make a big profit when the policyholder dies? Can they keep the profit?
REPLY
The sale of life insurance policy is quite common in some countries. It is legal. If not, the authoirty would have stopped it.
The investment company intends to pay the premium and collect the maturity benefit. They are not likely to know if the policyholder had died before the maturity date. If they do, they are entitled to keep the death benefit even though it is higher than the surrender value.
If the policyholder surrenders the policy to the insurance company, the policy is terminated and the insurance company will not pay any death claim.
If the policyholder sells the policy to the investment company for a higher surrender value, the policyholder can be considered as "terminated" as far as the policyholder is concerned.
If you are interested to know more about the sale of a life insurance policy, visit this website:
www.tklcloud.com/tlp
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