Author Topic: New trend - Instant approval life insurance  (Read 5366 times)

Offline gozalim

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Re: New trend - Instant approval life insurance
« Reply #90 on: July 24, 2017, 05:20:03 PM »
If you have a permanent policy, there is a secondary market you can sell it to. After that, they will pay your premiums and call once in a while to ask you nicely to please die as soon as possible. I don't think there is a market for term policies even if there is an ART extension
Correction: So you're arguing that a term customer should buywho has the convertible rider, can then before expiration, convert policy to a small WL policy and sell it?
« Last Edit: July 24, 2017, 05:30:58 PM by gozalim »

Offline hachover

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Re: New trend - Instant approval life insurance
« Reply #91 on: July 24, 2017, 05:28:55 PM »
So you're arguing that a term customer should buy the convertible rider, then before expiration, convert policy to a small WL policy and sell it?

I'm definitely not arguing for that. But if the price difference is $7 per year for conversion rights up to age 74 then it seems worthwhile to purchase that option. Who knows- you might want to convert and keep it
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Offline ExGingi

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Re: New trend - Instant approval life insurance
« Reply #92 on: July 24, 2017, 06:27:46 PM »
If you have a permanent policy, there is a secondary market you can sell it to. After that, they will pay your premiums and call once in a while to ask you nicely to please die as soon as possible. I don't think there is a market for term policies even if there is an ART extension
A convertible term policy (where there's underwriting arbitrage) should have value in the secondary market. One doesn't need to convert prior to settlement.
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