Sentences with phrase «original policy buyer»

If roommate B files a series of claims, for example, the rates of the original policy buyer would increase, and that person never filed a claim.

Not exact matches

The buyer cashes in the full amount of the policy when the original owner dies.

The appeal of such transactions is that, where the original policyowner has had an adverse change in health since the policy was originally issued, a third - party buyer may be willing to pay more for the policy — and hold it until the death of the original insured — than the insurance company is willing to offer as a cash surrender value.

A life settlement transaction will be most favorable for an insured who has had a significant adverse change in health, such that the policy is likely to pay out as a death benefit sooner rather than later (and thus why the buyer will pay more); the caveat, however, is that in such situations, it's especially appealing to keep the policy for that very reason (as if it's good for the investor, it's good for the original policyowner, too!).