Life Settlement and Reverse Mortgage Blog

New Reverse Mortgage Purchase Program

2009-04-14T09:57:00.000-07:00

The all new Purchase Reverse Mortgage Program is designed to help seniors purchase a new home and never make monthly mortgage repayments for as long as they live in the home. The new reverse mortgage law that makes this possible took effect in January. The law requires that FHA insure reverse mortgage loans to be used for these purchases.

A senior, 62 or older, can purchase a home using a reverse mortgage instead of the traditional mortgage. Seniors who wanted to purchase a new home with poor credit, or without a steady substantial income or who are not comfortable with beginning to make monthly payments all over again, can now easily do so with the reverse mortgage purchase loan.

Call Troy Today for Details about this Exciting New Program! Please do not Delay! TOLL FREE 1-888-973-8377

Life Settlement Resources

2009-03-14T10:01:00.000-07:00

We haven't shared any good Life Settlement Resources lately, so here they are:

Life Settlement Leads - Lead program for financial professionals and life settlement companies.
Life Settlement Tax - Tax information regarding a life insurance settlement.
Life Settlement Forum - Future forum for life settlement information sharing.
Life Settlement Information - Packed with information and an industry directory.
Life Settlement Articles - Articles and more.
Life Settlement Jobs - Careers and employment in Life Settlement Industry.
Life Settlement Conference - Find life settlement related trade shows and conferences.

Reverse Mortgage Features

2009-02-14T09:54:00.000-08:00

Here are some Reverse Mortgage features in case your forgot.

* Eliminates monthly mortgage payments
* Retain ownership of your home
* No out-of-pocket expenses and no mortgage insurance
* No income, employment or health restrictions
* Amount available depends on your age, value of your home, and current interest rates
* You never owe more than the value of your home
* Loan is not due until the last homeowner sells or permanently leaves the home
* Access loan proceeds in the form of a lump sum, line of credit, or monthly payment.

Call Troy at 1-888-973-8377 for a free evaluation and he will be glad to answer any of your questions.

Reverse Mortgage Education

2008-10-28T13:17:00.000-07:00

RTG Consultants continues to provide education material to our visitors and clients.

With the new HUD loan limit and regulation changes it is important that you are receiving valid and up to date information.

Please call 1-888-973-8377 to request a fresh information packet.

We also will be glad to answer any questions you have.

You can also learn more below:
Reverse Mortgage Education
New Limits are Active: Minimum of $417,000
New Reverse Mortgage Loan Limits

Premium Financing for Life Insurance

2008-06-06T19:29:00.000-07:00

So almost of you have heard about premium financing for life insurance. Seniors are now able to obtain large life insurance policies with zero out of pocket expenses.

There are numerous premium finance programs, so it is important to use a trusted company when exploring this financial planning tool.

RTG has been proud to release Premium Finance Life.

A full service premium financing firm. We will match up a premium finance program to meet your individual needs.

We handle all steps in the process and have aligned ourselves with some of the top firms in the industry.

Life Insurance is only a few clicks away... Call 1-888-973-8377 or visit Premium Finance Life today!

Reverse Mortgage Safety

2008-04-03T19:37:00.000-07:00

You looking for safe Reverse Mortgage?
Want a free information packet?

Reverse Mortgage Safety is here.

This HUD and national Reverse Mortgage Lender offers:
No up front appraisal fee!
30 day closing 30 day closing or less.. GUARANTEED
Tuition rewards for grandchildren Tuition rewards for grandchildren

And of course all the other standard reverse mortgage bells and whistles.

If you have questions or would like to see how much cash you can qualify for please call toll free 1-888-973-8377.

You can request your free packet or quote at: Reverse Mortgage Safety!

Senior Citizens we can help you NOW

2008-03-06T19:24:00.000-08:00

You Should Consider A Reverse Mortgage:

• You may out live your income
• Extra money for prescription drugs
• Replace loss of a second income (deceased spouse)
• Ability to afford home health care instead of a nursing home
• Home improvement money
• No mortgage payments….forever
• Emergency fund

What would you do if you had an extra _____ today?

1) Supplement your income?
2) Buy a new car, truck or motor home?
3) Replace lost income due to death of spouse?
4) Hire a caregiver to avoid a nursing home?
5) Pay off debts?
6) Help your grandchildren?
7) Create a larger estate for your heirs?

You Will Never Lose Your Home

• Title never changes
• Living trust is ok
• Never foreclose

How To Qualify

• Any title holder must be age 62 or older
• Debt to equity ratio must be 50% or less
• Home must be your primary residence for the life of the loan

Call 1-888-973-8377 today!

Life Settlement Transaction

2007-10-18T06:46:00.000-07:00

Life insurance policies that are no longer needed or wanted can be sold for significant cash settlements through a Life Settlement transaction. Most people do not know that there is a healthy secondary market for life insurance policies that individuals no longer need or want.

A Life Settlement is the sale of an existing life insurance policy to a third party for cash. A successful Life Settlement will always pay you substantially more than the cash value of the policy.

Question: So how long does the Life Settlement Transaction take?

Answer: The Life Settlement process can take anywhere from 4-8 weeks to complete. Depending on the amount of information provided by the client, including medical records and illustrations, offers can be received within 2 weeks. However obtaining medical records, trust information, inforce illustrations and more can slow the transaction. After an offer is accepted and contracts are completed, the life insurance carrier will usually make the changes within 7-10 business days. A life settlement broker can assist with obtaining all the needed information, and also assist with all closing documentation.

Call 1-888-973-8377 to speak with Life Settlement

Some Life Settlement Help Links:
Life Settlement Info
Life Settlement Information
Life Settlement Auctions

Small Face Value Life Settlements

2007-10-01T06:54:00.000-07:00

Small Face Policy Program is no ready to go. RTG Consultants can now assist with your lower face value life insurance policies. If you have a term insurance policy you can sell that too! (As long as it is convertible).

Face Values in the Range of $50,000 - $250,000

No medical records required, and we will have either an offer or a decline within 10 days! This is an extremely fast turn around for a Life Settlement Transaction.

Minimum age of 65 required, not all states are approved yet. Call 1-888-973-8377 to see if your policy qualifies. You could also get a free online quote.

The first testimonial is in!
"I was having such a hard time trying to sell my $100,000 dollar term life insurance policy. I was not planning on converting the policy, and figured it was basically worthless. I simply made one call to RTG Consultants and had a $15,000 offer 12 days later. A knew a life settlement was a powerful tool, but was surprised at the fast turn around on a small term policy that I was going to lapse. Thanks again guys!"
- E. Cordial, California

Reverse Mortgage Discussion

2007-09-10T07:17:00.000-07:00

You assume incorrectly. Since I see you saying you have no clue about HECMs, lets not assume anything about reverse mortgages. I'm not attacking you, just protecting the best practices surrounding the reverse mortgage.

Since reverse mortgages do not have certain credit or doc type requirements, they should not be lumped in with your statement.

There are folks who are house rich but cash poor who turn to a reverse mortgage to meet their monthly financial needs.

There are folks that thought they had plenty of money to retire on that never anticipated the long term health care costs that had to turn to redeeming equity in their home.

There are folks that own second homes with plenty of money in retirement accounts that take equity out of those second homes to invest in businesses or pay for their grand childrens education or to take out annuities- all accomplished using reverse mortgages.

The word "most" should not come to mind when mentioned with reverse mortgages.

I hope I answered without offending you.

Source: Reverse Mortgage Information

Life Settlement Financial Planning

2007-07-23T08:12:00.001-07:00

Life Settlements are turning Life Insurance into a financial planning vehicle.

Life Insurance coverage is a valuable tool however, when circumstances change, and a life insurance policy is no longer needed, wanted or affordable, historically seniors have allowed the policy to lapse or be surrendered back to the insurance company for a pre determined amount (the Cash Surrender Value). Lapsing a policy without exploring a life settlement option can be a huge financial mistake.

Seniors now have another option: to sell their policy to a financial institution for a cash settlement. Once the policy is sold, you will no longer be required to pay the on going premiums. The settlement amount is more than the value you would have received if you would have surrendered the policy or allowed it to lapse. This sale is called a "Life Settlement". How much would the settlement amount be? Appraise your policy now to discover its value. A life insurance appraisal can be calculated in a few seconds after you answer some very basic questions about your policy, age and health. You will not be required to enter personal information to obtain your results.

Call 1-888-973-8377 to find out if your policy will qualify for a life settlement. You can also get a Free Life Settlement Evaluation.

Other life settlement resources:
Life Settlement Auctions
Life Settlement Quotes
Senior Settlement
Life Settlement Forum

Reverse Mortgage Interest Rates

2007-07-20T08:04:00.000-07:00

I get many emails and questions about reverse mortgage interest rates.

With a reverse mortgage, you are charged interest only on the proceeds that you receive. Most reverse mortgages charge a variable interest rate (although fixed rate products are entering the marketplace) that is tied to an index, such as the 1-Yr. Treasury Bill or the London Interbank Offered Rate (LIBOR), plus a margin that typically adds an additional one to three percentage points onto the rate you're charged. Interest is not paid out of your available loan proceeds, but instead compounds over the life of the loan until repayment occurs.

The HECM (Home Equity Conversion Mortgage) which happens to currently be the most popular Reverse Mortgage Product is based off the T-Rate. (Tresury Bill rate) plus a margin.

To give you an idea of the interest rate, for the week of July 16, 2007. The interest rate for the HECM was 6.00% (Monthly adjusting with 1.0 Margin) and 6.87 (Annual adjusting with 2.6 Margin).

It is important to understand what your rate will be before moving forward with a Reverse Mortgage. Call 1-888-973-8377 to speak with a Reverse Mortgage Specialist. They will be able to give you an updated interest rate at now charge or obligation. You can also email rates@rtgconsultants.com for current reverse mortgage interest rates.

Life Settlement Premiums

2007-05-29T08:58:00.000-07:00

Another great life settlement question regarding payment of premiums..

Is my client still responsible for paying premiums after the policy is sold? If not, who is?

No, your client is no longer responsible for paying premiums. Once the policy is sold (and your client is no longer the policy owner), all premium payments and obligations are the duty of the purchaser (the life settlement company).

Are you ready to see the value in your life insurance policy?? Call 1-888-973-8377 today! Don't delay.

Life Insurance Settlement Association Attendance

2007-05-17T08:50:00.000-07:00

The Life Insurance Settlement Association (LISA) again broke its own attendance records at the 13th bi-annual spring meeting last week in New York. More than 550 attendees gathered in what Executive Director Doug Head called "a historic, highly successful meeting."

Among other business, LISA members presented the inaugural Life Consumer Freedom Award to Georgia Insurance Commissioner John Oxendine. Head says the award, which was initiated by the LISA Board and based on nominations from LISA Members, recognizes Commissioner Oxendine "for his recognition and support of consumer property rights," referring to the ongoing efforts of some critics of the life settlement industry to deny consumers the contractual rights to sell their life insurance policies.

A life settlement is the sale to a third party of an existing life insurance policy for more than its cash surrender value but less than its net death benefit. Such transactions are usually undertaken for the purposes of estate or financial planning.

Commissioner Oxendine reflected upon his experience at LISA, saying, "Attending the LISA meeting was an eye-opening experience; it is one that all regulators and interested legislators should have as it shows the real scope and professionalism of the settlement industry. I am honored to be the first recipient of LISA's Life Insurance Consumerism Award."

"We believe in consumer choice, and Mr. Oxendine obviously shares that view," Head says. "He and legislative and regulatory leaders like him have stood up for personal freedom for consumers. We firmly believe this includes the opportunity for people to be able to realize the value in the investment they have made in life insurance. No consumer should be obligated or locked into products that no longer fit their needs. Fresh thinking has helped people to break chains at every stage of American progress. Commissioner Oxendine is part of that effort."

Source: Market Wire

Call 1-888-973-8377 to speak with a Life Settlement Specialist. You also can get a FREE Life Settlement Quote.

Countrywide Rolls Out Reverse Mortgages

2007-05-15T08:42:00.000-07:00

Countrywide Financial Corp. has launched a reverse mortgage aimed at allowing seniors to cash out some of the equity in their homes, marking the largest U.S. home lender's entry into one of the fastest-growing markets targeting baby boomers.

The nation's aging population, along with the rapid housing-price appreciation from 2000 to 2005, has led to record growth in reverse mortgages, which allow homeowners 62 years old and above to turn home equity into income they don't have to repay until they move out.

The reverse mortgage takes its name from the way cash flows between a lender and a borrower. Rather than sending mortgage payments to a bank, as with a traditional mortgage, the borrower receives money in the form of a lump-sum payment, equal payments over time or a line of credit.

The bulk of reverse mortgages funded today are so-called Home Equity Conversion Mortgages, known as HECMs, which are insured by the federal government and cap the amount homeowners can borrow. To cater to people with higher-value homes, lenders increasingly are creating their own products that don't have loan limits. Meanwhile, the increased competition among lenders also is driving down the overall costs for consumers.

Countrywide's proprietary SimpleEquity reverse mortgage program offers lower upfront costs for those who opt for higher initial loan-draw amounts. A typical borrower of the loan has a home valued at $500,000. Specifically, the Calabasas, Calif., lender will waive both the origination fee and closing costs for borrowers who choose to withdraw the entire loan at the closing.

For those who decide to draw 75 percent of the loan amount initially and access the rest over time, Countrywide will waive the origination fee. Industry-wide, lenders typically charge an origination fee of 2 percent or less of a house's value.

Also, Countrywide doesn't charge SimpleEquity borrowers any mortgage insurance premium, which is a common charge on reverse mortgages, as lenders want to assure that borrowers never will owe more than the appraised home value. The insurance premium often accounts for another 2 percent of a home's value.

In addition, with the SimpleEquity program, Countrywide charges each borrower a $20 monthly fee for its efforts to service the loan, lower than the current prevailing range of $30 to $35 a month.

The lender introduced SimpleEquity in California late last year and rolled it out early this year in 46 states. At the same time, it also started to offer HECM loans in those states. The SimpleEquity product now represents a third of its reverse mortgage production.

Steve Boland, managing director for reverse mortgages at Countrywide, called the entry into these products "a very natural progression" for a lender that already ranked first among the nation's traditional home mortgage providers by market share. Ultimately, he said, Countrywide aims to "dominate the reverse mortgage industry."

And the race is on. Attracted by reverse mortgages' growth potential as baby boomers retire, more lenders are entering a niche market traditionally dominated by IndyMac Bancorp Inc.; Wells Fargo & Co.; Seattle Mortgage Co., which is being acquired by Bank of America Corp.; and privately held EverBank's BNY Mortgage Co.

Floyd Robinson, president of Bank of America's consumer real estate division, said the purchase of Seattle Mortgage, coupled with the proprietary reverse mortgage it already has been testing, will "propel us to our target of being the No. 1" reverse mortgage originator by the end of 2008.

In light of the evolving market for reverse mortgages, Bronwyn Belling, a reverse mortgage specialist at the AARP Foundation, which doesn't endorse any lenders, suggests, "Unless you have an urgent need, it may be worth your while to see how the changes in the market affect the products, the pricing and the choices."

Shares of Countrywide fell 95 cents, or 2.3 percent, to $40.13 in early trading Monday.

Source: AP

Reverse Mortgage Drawbacks

2007-04-27T08:47:00.000-07:00

Reverse Mortgages are gaining more and more steam due to the vast amount of benefits and heavy regulation in the industry.

Despite the various benefits of a reverse mortgage, it is crucial to consider its drawbacks prior to securing one.

When the homeowner dies or permanently moves out of his home, the home will need to be sold in order to pay off the mortgage. The mortgage will be due at this time, in a lump sum. If the homeowner or his inheritors want to keep the home, they would have to make payment on the home within a year of the mortgage becoming due. However, the heir can refinance the home to a loan that better fits their needs and budgets.

There are quite substantial fees involved in a reverse mortgage. This type of mortgage is generally more expensive than a regular mortgage or loan. In the beginning, the homeowner is expected to pay mortgage insurance premium, origination fee, appraisal fee and closing costs. In short, a $200,000 reverse mortgage may have $10,000 worth of fees involved with it. The fees are deducted from the loan prior to the funds being released to the homeowner. There may be additional servicing fees to be incurred during the term of the mortgage.

If the homeowner still holds a mortgage on the home when he seeks out the reverse mortgage, the mortgage will need to be paid off in full with the funds from the reverse mortgage and/or personal funds as needed.

Call 1-888-973-8377 to find out more about reverse mortgages or to request more information.

Reverse Mortgage Properties

2007-04-15T08:39:00.000-07:00

Not all properties qualify for a reverse mortgage. The home must be in good condition; however basic repairs may be completed after closing. Condominiums must meet FHA guidelines and condominium parks for manufactured homes do not qualify. Any manufactured homes must be 1976 or younger, be on an approved permanent foundation and on the owner's property.

The amount of money available is dependent on several factors. These include the age of the youngest borrower, the appraised value or FHA county limit (whichever is less), current program rates and property qualifications.

Additionally, any judgments or liens will be paid at closing if applicable.

A Reverse Mortgage Lender such as ReverseMortgageNation.com can assist you with your reverse mortgage needs.

To speak to a professional instantly, please call tol-free 1-888-973-8377, we would be glad to answer any questions you might have.

Life Settlement Safety

2007-03-28T07:44:00.000-07:00

When using a Life Settlement Broker such as RTG Consultants, there are a lot of safety and flexibility additions. We provide the flexibility to use numerous funder providers and entities to retreive the highest offer for your policy. We also keep your personal information confidential and submit your case to only professional and licensed (where required) providers. You also work directly with us, this will limit that amount of firms that will be contacting you, requesting information, and wasting your time. We are fast, precise, and handle basically all the processing.

The process of finding a life insurance settlement is simple. Once a client submits a signed application and medical insurance release forms, we will order all medical and insurance records necessary to complete the Life Settlement. Once these records are received, we will complete a partial underwriting and obtain a Life Expectancy from a third party provider. As soon as the case file is complete, the policy will be submitted to several potential buyers for purchase. There is never any obligation our cost.

When you are thinking about a life settlement, utilized a Life Settlement Broker that you can trust, is safe, and honest. Call RTG Consultants at 1-888-973-8377 with any questions, to obtain an application, or for a free life settlement quote.

Resources:
Life Settlements

Reverse Mortgage Quitclaim

2007-03-19T05:24:00.000-07:00

Found this in the local Orlando newspaper this morning when I was enjoying my coffee. A great article about using a quit claim deed for someone on the title of home that is going to get a reverse mortgage. Remember only the homeowner(s) who is over the age of 62 can be on the deed.

Question: I am a 74-year-old widow. About six years ago, I added my daughter's name to my home's title in joint tenancy with right of survivorship so she wouldn't have to worry about probate costs when I pass on. I'm doing pretty well, health-wise, but I am running low on income since my airline pension income was cut about two years ago. However, I am told I can't qualify for a senior-citizen reverse mortgage because my daughter is on the title. Is this true? I asked her to quitclaim her interest back to me, but she is reluctant.

Answer: Since your daughter is obviously not yet 62, her being on the title to your home disqualifies you for a reverse mortgage. All co-owners must be at least 62 because reverse-mortgage eligibility is based on the age of the youngest owner.

Your situation is another example why I do not recommend adding heirs to real estate titles to avoid probate.

However, your problem has an easy solution, which is good for you and your daughter. You can create a revocable living trust with your daughter named as the successor trustee and the heir of your living-trust assets after you pass on.

Before you do this, be sure she agrees and signs a quitclaim deed to you. Then obtain your reverse mortgage. After it is recorded, you can then transfer title to your home into your new living trust, thus avoiding probate after you pass on.

The reason you should wait until after the reverse mortgage is recorded to transfer title into your new living trust is reverse mortgage lenders insist the title not be in a living trust when the reverse mortgage is originated.

Source: Bob Russ and Orlando Sentinel

Life Insurance Terms

2007-03-09T07:54:00.000-08:00

With all the discussion about life settlements, it was time to provide some education. Please call 1-888-973-8377 to speak with a specialist who would be glad to answer any additonal questions.

Here is a glossary of Life Insurance Terms:

-- Accelerated Death Benefit: A policy provision or rider that lets you collect part of your death benefit before you die. If you have a terminal illness, the policy advances you a specified part of your death benefit to pay medical bills or other expenses, then the amount is subtracted from the death benefit your beneficiary receives.

-- Accidental Death: A provision or rider that promises to pay more (usually double) if you die in an accident. Also known as double indemnity.

-- Actuary: A mathematics expert who applies probability theory to the business of life insurance and is responsible for calculating premiums, policy reserves and other values.

-- Administrative Fee: Charges some policies deduct from cash value accumulation each year.

-- Annuity: A contract purchased through an insurance company, usually to accumulate funds that can be used after retirement.

-- Annuitant: A person who receives an income benefit from an annuity.

-- Assignment: Giving rights under the insurance policy to someone else. You can assign beneficiary rights or policy ownership.

-- Automatic Premium Loan: A provision in a policy that authorizes the insurance company to use money from your cash value to pay premiums.

-- Beneficiary: The person you designate to be paid a death benefit when you die. A policy may have one or more beneficiaries.

-- Burial Policy: A policy with a relatively small death benefit, intended to cover your funeral and burial expenses.

-- Cash Value: The savings portion of a life policy. When your premium payments are more than the cost of insurance, the excess goes into a cash value account and draws interest.

-- Certificate: The evidence of coverage received by persons insured through a group life policy.

-- CLU: Charted Life Underwriter. A title that agents and other insurance professionals can achieve after taking a series of classes and passing exams. An agent with CLU after his or her name should know a lot about life insurance.

-- Contestable Period: In Ohio, an insurance company can challenge a life insurance policy during the first two years after issue.

-- Conversion: Changing a term life policy to some other form. This can be done only when the policy is described as convertible.

-- Credit Life: A policy intended to pay off a debt (loan for car, furniture, appliances, etc.) if you die.

-- Death Benefit: The money that a life insurance policy promises to pay your beneficiary when you die.

-- Decreasing Term: A term life policy whose death benefit goes down each year.

-- Dividends: When a company collects more money from policyholders than is needed to cover the cost of insurance.

-- Endowment: A cash value policy that sets a specific time at which the cash value will equal the death benefit. If you buy a $10,000, 20-year endowment policy, you will immediately be insured for $10,000. If you are still living at the end of 20 years, you will receive $10,000 in cash.

-- Face Amount: The sum a policy promises to pay when the insured person dies, or at the maturity of the contract.

-- Family History: Information about medical or mental problems of your parents and other family members. Companies may charge you higher premiums or reject you if your family has a history of cancer, heart attacks, or such diseases as Huntington's.

-- First to Die: Provision in a policy that insures both husband and wife. When the first spouse dies, the survivor collects the full death benefit.

-- Fraud: Any time you knowingly provide false or incomplete information on an application for insurance or on a claim.

-- Free Look: A time after you receive the policy for you to review and consider whether it is what you want.

-- Genetic Testing: Using modern scientific analysis of your blood to determine whether you have any genetic defects that might make it more likely that you would die earlier than the average person. Ohio permits insurance companies to use the results of genetic testing for life insurance policies, but only a few companies require genetic testing.

-- Grace Period: The time after an insurance premium is due during which the premium can still be paid with no interest charged, and coverage remains in force. This period is usually 30 to 31 days.

-- Group Life: A policy issued to an employer, association, or other organization.

-- Guaranteed Issue: A policy that is sold to all applicants without regard to their health.

-- Guaranteed Rate: The only interest amount that the insurance company promises to pay on any cash value in the policy.

-- In Force: A policy is in force when all conditions have been met to establish or maintain the company's obligation to pay if you die.

-- Insurable Interest: In order to be the owner and beneficiary of a life insurance policy, there must be some relationship to the insured person.

-- Lapse: The termination of an insurance policy as a result of failure to pay the premium.

-- Loan: If your policy has accumulated cash value, you may borrow part of it. Interest rates are generally better than bank rates. The amount you borrowed will be deducted from your death benefit until you have repaid it.

-- Mortality Charge: The cost of insuring you at your current age.

-- Nonforfeiture: If you cancel a cash value policy after several years, the company is required to refund part of the cash value.

-- Outlay: The amount you pay the insurance company for insurance (same as premium).

-- Paid-Up: A policy on which all premium payments have been made.

-- Participating Policy: A policy that has the possibility of paying dividends.

-- Policy Owner: The person who contracts with an insurance company for a life insurance policy. The owner of the policy has the right to designate beneficiaries.

-- Preferred Rate: The rate the company charges people who have the lowest risks.

-- Pre-need Contract: A contract with a funeral home that makes it possible to pay your funeral expenses in advance.

-- Reinstatement Period: Restoration of a policy that has lapsed due to non-payment of premium after the grace period has ended. The reinstatement period in life insurance is 3 years from the premium due date.

-- Renewable Term: A term life policy that guarantees you the right to renew at the end of the term.

-- Replacement: An insurance agent replaces your policy when he sells you a policy to take the place of one you already have. Ohio law requires you to sign replacement forms whenever money from one policy is used to buy or fund another policy. If the new policy is with a different company, the agent must notify your old company. The old company then has a chance to persuade you not to switch.

-- Rider: An addition or amendment to an insurance policy.

-- Risk: The likelihood that you will die while insured.

-- Risk Factor: Things about you that affect your risk, such as age, smoking, hazardous occupation, or a family history of heart disease.

-- Settlement Option: How a beneficiary receives payment of the death benefit.

-- Suicide Clause: A life insurance policy will not pay a death benefit if you commit suicide within the first two years after you buy the policy.

-- Surrender Charge: If you surrender an annuity or life policy prematurely, the company may deduct a fee from the amount it owes you.

-- Term Life: The simplest form of life insurance, it generally offers no cash value feature. You pay a premium and the company promises to pay your beneficiary if you die.

-- Underwriting: The insurance company's process for determining whom it will insure.

-- Universal Life: A flexible-premium life insurance contract that accumulates values and pays a death benefit. You choose the policy's premium and face amount, and you can adjust these as long as the policy is in effect.

-- Variable Life: A type of whole life insurance in which the face amount and cash value rely on the investment performance of a special fund. Reserves are placed in investment accounts that are separate from the company's general account.

-- Viatical Settlement: An agreement to sell the ownership of your life insurance policy to another, unrelated person, who becomes both the owner and beneficiary of the policy.

-- Waiver of Premium: A provision that suspends your obligation to pay premiums when you are disabled or you meet some other policy requirement. This is a common feature in life insurance polices.

-- Whole Life: Life insurance with a savings feature. Premiums generally are the same (level) every year. When you are young, your premiums are more than the cost of insuring your life at that time. The excess amount accumulates and resembles a savings account, called cash value. This excess is used by the company to insure you later in life, when your level premium is no longer enough to cover you.

TermLifeFlorida.com offers numerous types of Life Insurance, including:

Return of Premium
Low Cost Term Insurance
Mortgage Protection

Call 1-888-973-8377 with any questions.

Viatical Settlement Company Pleads Guilty

2007-03-09T07:49:00.000-08:00

Viatical Company Pleads Guilty to Racketeering, Fraud

Mutual Benefits Corp., once the largest viatical settlement company in the country, has entered a guilty plea to criminal charges of racketeering and investment fraud in Florida's Broward County Court.

The company will be placed on probation and will be administratively monitored by the Florida Office of Insurance Regulation.

The charges were filed by the Attorney General's Office of Statewide Prosecution in May of 2004.

The viatical industry frequently involves the discount purchase of life insurance policies from an insured individual who has been diagnosed as being terminally ill. Investors become named beneficiaries and upon death of the insured, are paid the full amount of the policy. The profit is based upon the projected life expectancy of the insured.

Fraudulent life expectancies issued by Mutual Benefits left many investors with false expectations and investments that negatively surpassed their advertised terms, prosecutors charged.

"This company intentionally defrauded thousands of people, offering the 'once-in-a-lifetime' deal," Florida Attorney General Bill McCollum said. "My office and the Department of Financial Services share the common goal of protecting the citizens of our state. I thank them for partnering with us to bring this company to justice."

Florida's Department of Financial Services began investigating criminal allegations against Mutual Benefits in 1999. Authorities discovered that during the bidding process for the policies, principals of the company were setting the life expectancies of the insured persons prior to any medical review and sending backdated life expectancy letters to the investors.

As a result, policies were not maturing as promoted in marketing materials and investors were not realizing the investment return promised by Mutual Benefits. The company sold policies worth more than $1 billion to over 30,000 investors worldwide.

The criminal charges filed by the Office of Statewide Prosecution were a direct result of the investigation conducted by the Division of Insurance Fraud. The company's license to conduct business in Florida has since been revoked as a result of an administrative action filed by the Florida Office of Insurance Regulation.

The U.S. Attorney's Office filed criminal charges against Peter Lombardi, the president of Mutual Benefits, who was sentenced to 20 years in prison earlier this year. Federal charges were also filed against Clark Mitchell, the doctor who falsified the life expectancies. Mitchell pled guilty and faces up to 10 years in prison. He is scheduled to be sentenced later this month. Victim restitution is being handled by a receiver who will be monitored by a federal district judge.

In February of 2000, the Fifteenth Statewide Grand Jury issued a report on the viatical industry which led to broad legislative changes primarily geared to consumer protection. Since that time, there have been sweeping changes in the operations of Florida-licensed viatical settlement companies and the number of these companies operating in Florida has dwindled significantly.

More Viatical and Life Settlement News at LifeSettlementPro.com

More Reverse Mortgage Examples

2007-03-01T08:00:00.000-08:00

I made a couple calls and visited with recent clients and seniors who have completed a recent reverse mortgage. I found these other examples online, it is good to share examples so others can see the benefits of a reverse mortgage and how it might work with their specific situation.

Age - 72
Home value - $250,000.
Equity - $210,000. with a mortgage balance of approx. $40,000.
Problem - Mary lives alone and wants to stay in her home but is having difficulty meeting expenses. Her mortgage payment is $611. per month. With her Social Security income and pension she is still short $187. per month.
Solution - A tax free* reverse mortgage for $129,138. Taking a lump sum of $40,000. to pay off her existing mortgage and the balance in monthly payments of $561. After paying off the mortgage, Mary's monthly income rises to $1172. ($611. mtg. paym't plus $561 from the reverse mortgage).

Age - John is 82 and Joanne is 80
Home value - $850,000.
Equity - $850,000.
Problem - Their income is sufficient to live as planned but they would like to assist with the college tuition for their two grand children.
Solution - A reverse mortgage credit line of up to $265,411. Then each grandparent can gift, each year, to each grandchild, the amount currently allowed by law*. Income from a reverse mortgage is currently tax free*.

Call Toll-Free 1-888-9REVERSE (1-888-973-8377) to speak with a Reverse Mortgage Specialist. There is no obligation or cost for our services.

Reverse Mortgage Cash Account

2007-02-13T08:27:00.000-08:00

Financial Freedom Cash Account Advantage Plan sometimes refferred to as a Jumbo Reverse Mortgage.

Financial Freedom's proprietary Cash Account Advantage Plan reverse mortgages have been designed especially for senior with substantial home equity or higher-valued homes. No other reverse mortgage lender offers a jumbo loan product comparable to the Cash Account Advantage Plan and its options.

Financial Freedom Cash Account Advantage Plan reverse mortgages have virtually no limit on home value or the amount of the loan. As a result, the amount of money available to the homeowner may be substantially greater with a Cash Account Advantage Plan reverse mortgage than with other options.

Cash Account Advantage Plan features a number of options that allow you to maximize the benefits depending on your unique needs, including eliminating upfront fees and closing costs. Currently there are three available options: the Credit Line Option, the Combo Option, and the Cash Out Option. With all Cash Account Advantage Plan reverse mortgage options, the rate is reset semiannually; there is also a lifetime interest rate cap. A servicing fee is automatically financed on the account each month; there is no such fee in Illinois and Maryland.

In addition, there is no equity or appreciation sharing and no maturity fee.

Available for all Cash Account Options, Equity Choice Feature allows the borrower to limit the loan obligation to a stated percentage of the full market value of the home resulting in the amount of the loan or line of credit being less than the amount for which the borrower otherwise qualifies. Borrowers may choose to protect a minimum of 10% and a maximum of 50% of their home equity. This permits greater flexibility assuring a percentage of equity remaining to benefit the borrower or heirs upon loan maturity.

Call 1-888-973-8377 (1-888-9Reverse) to apply for a Reverse Mortgage Cash Account or to have any questions answered.

Life Settlement Consumer Tips

2007-01-22T08:19:00.000-08:00

Life Settlements are growing rapidly, make sure you understand the process and follow some of the below tips. If you have any questions don't hesitate to call 1-888-973-8377 for a free life settlement consultation.

- Understand how the life settlement process works and when the different phases will happen.
- Decide whether to sell your policy directly to a life settlement provider or go through a life settlement broker who will do the comparison shopping for you.
# If you don’t use a life settlement broker, comparison shop on your own.
- You don’t have to accept any life settlement offer. There is not cost or obligation to receive a life settlement offer.
- Check all life settlement application forms for accuracy, especially information about your medical history.
- Make sure the life settlement provider agrees to put your settlement proceeds in escrow with an independent party or financial institution to make sure your funds are safe during the transfer.
- Find out if you have the right to change your mind about the life settlement offer after you get the proceeds. In many states, you have the right to change your mind for a certain period of time. If you have that right, you’ll have to return the money you were paid and premiums the buyer paid. Check the recession period in your state.
- Understand whether buyers may learn your identity when they buy your policy, and whether they will know certain medical and personal information about you, such as your address and life expectancy.

Life Settlements are a secure and safe transaction, however these tips should help educate you and add additional protection.

Avoid Reverse Mortgage Scams

2007-01-08T08:15:00.000-08:00

These are a few Reverse Mortgage Scams that are going around. These are different than Reverse Mortgage Disadvantages. To find out the Reverse Mortgage Disadvantages and Advantages, please call a Reverse Mortgage Specialist at 1-888-973-8377.

Charging for information that is provided to all people for free.
Beware of estate planning companies that charge for information provided free from HUD. Typically these estate planning companies charge for this information as part of an estate planning program. Seniors that sign up for these programs are unaware that these firms are collecting thousands of dollars by charging a fee of 6 to 10 percent of the total amount borrowed. These fees cost the victims $6,000 to $10,000 on a $100,000 reverse mortgage. HUD has recently issued a directive to lenders that issued reverse mortgages insured by the Federal Housing Administration (FHA) to stop doing business with these companies.

Pushing reverse mortgages as a way to pay for purchases.
Some companies that sell large ticket items or services, like annuities or insurance products, may suggest using a reverse mortgage as a way fund these purchases. Unfortunately, when the additional cost of the reverse mortgage is factored into the purchase, it ends up costing the homeowner much more than the benefit provided by the product or service.

Unethical reverse mortgage terms.
Some lenders include extraneous fees and terms into their contracts, which can have a serious effect on a senior's equity. Some lenders have used shared equity or shared appreciation terms, which gives the lender the right to collect a portion of the appreciation when the home is sold or refinanced. The cost of these provisions can run into the tens of thousands as the home appreciates. These rising cost provisions eat up equity without providing any additional benefit to the homeowner. Read your contracts carefully, and question any fees or terms that you do not understand or expect.

Learn about Reverse Mortgages:
Reverse Mortgage
Reverse Mortgage Questions
Reverse Mortgage Information