February 22, 2010

Life Insurance Settlements: The Details

If you have a life insurance policy there is a good chance that you have heard of “life insurance settlements.” But if you have not, there is no reason that you should worry. The fact of the matter is that life insurance settlements are not right for every policy holder, and even if you know what they are there is a good chance that you will never move forward with the process. But with that being said, you should at least consider the details of life insurance settlements. This way, if you ever decide to make a move you will know exactly what you are getting yourself into. Luckily, you can learn about life insurance settlements in no time at all if you are willing to read into the details.

So what is a life insurance settlement? Generally speaking, this is the sale of a life insurance policy to a third party. The sale price of a life insurance settlement is less than the death benefit but more than the cash surrender value. A life insurance settlement usually refers to a transaction made by somebody who is not terminally ill and over the age of 65.

If you own a life insurance policy it is easy to see how you can get involved. Simply put, you can sell your policy as a way to make money. The question is why would you want to do this? For some people, there is no need to have a life insurance policy any longer. All of their kids are grown up, and they would rather have money for themselves now than wait for somebody else to use it when they die. So by selling a life insurance policy they can collect this money now.

Here are three common reasons for looking into life insurance settlements.

1. The life insurance policy is no longer needed.
2. Premium payments are more than the policy holder can afford.
3. To earn money to pay for health expenses.

There are many factors that go into how much money a life insurance policy is worth. If you think that a life insurance settlement may be right for you, make sure that you shop around for the best deal. Some of the details that determine the amount of money that you receive include your medical condition, age, type of policy, and monthly premium. Of course, this will change on a case by case basis.

All in all, there are quite a few details to consider if you are interested in selling your life insurance policy. You will want to learn as much as you can about life insurance settlements, and then make a decision on if you should sell.

Trevor Riley
http://www.articlesbase.com/finance-articles/life-insurance-settlements-the-details-139244.html

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Comments on Life Insurance Settlements: The Details

February 22, 2010

Lee J @ 9:58 am

Can I sue the other driver’s insurance company, or do I have to sue the other driver himself?
Sorry this is so long, but I wanted to give enough details for folks to give an informed answer.

I was driving Thanksgiving morning when another car blew through a red light and destroyed my car. Thankfully, no one was injured but both cars were declared to be total losses.

The other driver said the brakes of his ‘90 Lincoln failed, and that he was unable to stop. He KNEW that his brakes were leaking brake fluid and had continued driving the HUGE car anyway. He was given a ticket for failing to maintain his vehicle. This wasn’t an "accident", the kid knew that his car was unsafe and didn’t see fit to fix it before endangering the lives of every other driver on the road.

I’m not a wealthy guy, so I buy clean older cars with low mileage. My car was a ‘93 Buick with 98,000 miles (only averaging a little over 6500 miles per year!) and was immaculate - never in an accident, perfect paint, owned by a non-smoker, no rips or tears, perfect headliner and carpet. I shopped for weeks to find this car. Kelly Blue Book and the NADA used car guide valued the car from $2800-3400 depending on condition. I had just purchased it on 10/1/08 - not quite two months before the accident - for $2800.

The other driver’s insurance company accepted liability, and then offered me the ridiculously low-ball figure of $1870. I spent weeks shopping for that car, and I’ve been shopping for another CLEAN, low-mileage, older model used car like my ‘93 Buick. I know from all of my shopping around that there is NO WAY that I can replace that car for what they offered.

I’m not trying to burn anyone or get more than I’m entitled to. Someone else caused a reckless and careless accident that destroyed my car. All I want is to be properly covered for my loss. I cannot afford anymore for a car than what I’m reimbursed by his insurance company, and I can’t get much for $1870.

I don’t want to go to small claims court, it’s expensive (it will cost me at least $350 to file), but I will if I can’t get a better settlement than what I’ve been offered so far. But my question is:

Should I sue the other driver - who caused my loss, or should I sue the other driver’s insurance company?

I’d rather go after the insurance company. The kid driving the other car was foolish, but he’s a kid (19 years old) and hopefully learned a lesson. Besides, he paid his insurance company to assume his risk. But I don’t know if I can go after his insurance company. It seems to me that the other driver is primarily responsible for my loss, not his insurance company.

So, can I sue the insurance company, or do I have to go after the other driver?

tonalc2 @ 3:00 pm

Your insurance company is the one that handles this. Of course the other driver’s company is going to low ball you. Don’t accept it.

Companies automatically set an amount for a claim that they will go to, then offer a very low amount.
References :

MSAD @ 3:02 pm

You would sue the at fault driver. You do not sue the insurance company.
The insurance company did not cause your damage.

But, instead of getting all worked up about filing a law suit (and there is no guarantee you would get the money you want) - how about getting all your documentation on the car together and sending it to the insurance company to review. You never know, it may change the numbers.

You can make a counter offer– but you have to have something to support your counter. So make a counter and send them the docs to support it.

**not legal advice.
References :
Insurance Adjuster 12 years

I <3 Shoes @ 3:04 pm

You most likely won’t have to sue at all. You need to negotiate with his insurance company until you reach a settlement you can agree on. You’ll want to wait until you’ve finished any medical treatment. You will get one settlement for the car (you most likely won’t have to negotiate that one, they will give you whatever it’s worth on Kelly Blue Book) then you will get a separate settlement for medical/pain & suffering. If you did have to get to the point of litigation, you would sue the driver but still most likely settle w/ the insurance company.
References :
I’ve worked in a personal injury law firm for 2 years. I deal with this every day.

ctsmrvn @ 3:06 pm

You have a tough problem to solve. If you go after the insurance company, you will be battling a pack of lawyers who will use every delaying tactic in the book, and if you do win eventually, you will be too old to drive anyway. You are also correct to be concerned about going after the other driver, as you will not only feel bad about it, but you are unlikely to do much better on the settlement. The cost of going after the insurance company with your own lawyer can be high, and you might not win anyway, in which case you will be out not only the cost of your car, but also the cost of the lawyer as well as the time and effort. So, the question you need to answer: Is it important enough to you to get a better settlement so that you are willing to take the risks and put in the additional time? Or are you willing to remain dissatisfied, but refuse to waste any more time, energy, and effort on the attempt to get a better deal. Basically, there are no other choices.
References :

Michael D @ 3:08 pm

find out what value your insurance company places on your car. if it’s more than his company is offering your insurance company is the one that has to sue his.
References :

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