Make Money buying life insurance on people dying?

Question

Is it possible to buy life insurance on people dying and then me keep half and give their family half of it too? I'm just curious as I thought it would be a good money maker.

I just thought a person may not have life insurance and if they are really old and probably going to die in next 3 years, it would be helpful to buy it for them to pay for funeral expenses and stuff. Also I could be a nice person and give half of it to the family of their choice. I do not think this is an evil question. Come on people, get real. People out there die all the time without insurance and then their kids are the ones who suffer.

Answer 1

Actually a viatical company will work with people who all ready have life insurance and give sort of an advance to the family or insured on any EXISTING insurance policy. the key is there has to be a policy in place all ready. The viatical company changes the policy so that they in turn are the beneficiaries and keep part of the death benefit. this is legal in some states because the family may need the money. Most insurance companies will not issue a policy to a person over the age of seventy. The person regardless of age also has to prove to be insurable. Blood, urine and paramedical tests are done and the company may not wish to take the risk of insuring the person.

Answer 2

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Answer 3

First, you need to ask your insurance rep this question. The reason for that is because all plans are slightly different. Also, each state regulates the insurance companies doing business withn their borders, and may impose legislation dealing with this specific topic. Having said that, what I am about to tell you is a general answer, not a specific one. Again, you'll have to check with your insurance rep to find out for sure. Most carriers impose a waiting period for benefits. What that means is that they will impose a timeframe, usually 6 months to a year, whereby benefits would not be paid, if the insured member suffered an insured death condition. So ask your rep what the waiting period for full coverage is. Second, you must also be aware of the spcific language of your policy. Most life insurance policies cover you for "accidents," not health related issues regarding mortality. So if you were to suffer a heart attack, too bad. But if you're run over by a bus, fine. Also, acts of war and acts of God are traditional exclusions to most insurance policies. Let's say you're on the 9th tee and a lightning bolt strikes as you make your upward swing, taking your life. Oops - act of God - not covered. Lightning, wind, tornadoes, hurricanes, the weather in general, extreme heat, can all be considered acts of God, and not be covered, so it's a good idea to ask your rep what is and is not covered, when you don't know. You can always take a copy of your life insurance certificate to an attorney for interpretation. They can be most helpful in deciphering what you are actually covered FOR. In any case, be a good consumer. Read the fine print and the instructions that came with what you have purchased. It is our responsibility as consumers to make sure anything we buy meets with our expectations of performance. If the product or service does not deliver, shop around for one that does. But do it as a smart consumer. Don't just buy insurance because you need or want coverage. Buy insurance because it will protect you from those things you consider insurable, and cannot live without. What you'll find is that most of the pollicies being offered at rediculously low prices offer rediculoulsy low benefits in return. Hope that helps.

Answer 4

It's not going to be a good moneymaker, because insurance companies figure the odds before deciding on the premium. If you're OLD, or have a terminal illness, the insurance is going to cost as much as it pays out, maybe more.

Insurance is betting. Insurance companies are bookies. The odds are ALWAYS stacked in favor of the house. The reason people dying don't buy life insurance, is that it costs more than it pays out.

Just like, you can't go to the track and place a bet AFTER the race is won.

Answer 5

So you plan to start up a viatical settlement company? Check with your state insurance commissioner, they should be able to help you start this venture. Just remember that these are people who have families so don't take advantage of them. There are companies out there that do this right now. Insurance companies are thinking about doing this and then creating a mutual fund. Marketing practices have gotten other companies in trouble.

Answer 6

I think family can be the only ones to buy life insurance, otherwise people could just go to the hospital and cash out. And get a day job!

Answer 7

If they are over the age of 65 or will die in the next 2 years, it's technically called a "viatical", whereas it is called a "life settlement" in all other cases.

This is actually an increasing market with many different ins and outs. The primary thing that individual investors need to think about is your own ability to access risk and diversify the mortality risk of your risk pool. There are many ethical issues involved too. Go do some research - you will be in competition with institutional investors.

Answer 8

There are companies that do this already and the insurance companies and the insurance commissioners (regulators) are cracking down on the practice.

Find some other way to make money.

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Answer 9

You must have an insurable interest in whoever you buy insurance on. In other words, you could not buy a life policy on Bin Ladin, as you do not know him, are not related, and have no insurable interest in his health.

Answer 10

sorry, but you would not be considered the legal beneficiary, that privilege belongs strictly to family members,the living persons can include others in his will, keep in mind that attorneys,and courts stand firmly behind the families rights . on the other hand grave robbing is discouraged.