The MAS website showed 13,460,000 policies in force at end of 2015. The surrender rate is 2.3%. This means that 310,000 policies are surrendered in a year.
In most of these cases, the policyholder receives a poor surrender value from the insurance company. The surrender value will usually be less than half of the total premiums paid.
Here is some good news. They may be able to get a better surrender value from this "investment company". This is usually higher than the surrender value offered by the insurance company.
Why is this the case? The insurance company is acting like a monopoly - so they offer a low value. The tell the policyholder - take it or leave it.
If the policyholder approaches the investment company, they will usually find a better value.
Here is the link
http://tklcloud.com/tlp/page/1
In most of these cases, the policyholder receives a poor surrender value from the insurance company. The surrender value will usually be less than half of the total premiums paid.
Here is some good news. They may be able to get a better surrender value from this "investment company". This is usually higher than the surrender value offered by the insurance company.
Why is this the case? The insurance company is acting like a monopoly - so they offer a low value. The tell the policyholder - take it or leave it.
If the policyholder approaches the investment company, they will usually find a better value.
Here is the link
http://tklcloud.com/tlp/page/1
Instead surrendering their policy to the insurance companies consumers who need money should sell their policies to the 'life settlement company ' for a better return. The company will use policies to construct a UT fund and offer to the public for investment. The return will be higher if the policy holders die earlier than expected and the proceeds from the 'claim' will go into the fund.
ReplyDeleteThe truth is insurance companies are afraid of the life settlement companies because ALL life policies will be held till claim. It means the insurance companies have to pay the MAXIMUM proceed which is NOT an expected acturial probability becuase the insurance companies are BETTING that NOT ALL POLICES WILL RESULT IN CLAIM. If all policies result in claim the insurance companies will go insolvent and go bankrupt.
For better cash value sell your policies to the life settlement companies .