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The Lifeline Program CEO Scott Page on his business that lets you cash in your life insurance policy.
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-- -- -- -- Would you -- accompanied by your life insurance policy for a quick cash -- Our next guest is Chief Executive Officer of a company that does exactly that -- -- -- page he's with the lifeline program and he is here with us in New York.
That mr.
Vogel is right stuff.
-- go to life insurance policy.
I want the money now count what July -- forget my estate I want it now I come to you and you make me an offer of a cash but check you give me the check you get a life insurance you get a payout when -- croak.
I get the money now.
Correct right.
-- the discount.
The discount it we also take -- into consideration future premiums to keep policy in force and we're taking the risk that you either outlive our life expectancy are primarily.
Details could rage and according to anywhere between 20% of the face value for the pan out.
20% of that's it that's so you'll gambling.
On the might early death you want me to die quickly so that the payout comes more quickly to you right.
That's part of the investment but you know life insurance is of that.
And I were taken the odds that you made -- live longer than our anticipated life expectancy.
And in those cases these insurance selling the policy is no longer need or want the coverage.
And if they surrender over the life insurance companies sometimes they get nothing but it every case they always we'll get more through life settlements into -- -- -- cash surrender value for my.
Particular point I have to use a calculation I I'm being -- of it bring in the emotion and here you wanted to -- I know that's not part of the calculation of the visit calculation.
OK what about the fees that are involved is -- the next 20% roughly that I get its normal phase -- -- roughly average percent of 20% include all fees that you received net in your pocket and at the end of the settlement now for a regular life insurance policy I die my a state gets the money tax free.
If you pay me a check -- I get an early payout is that tax on -- early payout to.
Yes -- there are -- as many times it could be considered capital gains that we advise everyone to consult with their professional tax advisor so if I've got a million dollar life insurance policy -- cash -- -- -- -- you you might give me 200000.
May be.
And I then have to pay tax on the 200000 dollars correct.
And it's still will be more than a few surrendered it within the insurance company Aureus or rented it for zero.
You know all of all of -- 85% of all life insurance lapses -- no cash payout in the country okay I'll get past that point now why do people do this because that's a huge -- well I think if we look at the economy you know it's it's it's in the toilet retirement -- -- in jeopardy.
Pensions are failing -- security has a huge strain upon it and we think people need to rethink their retirement and life settlements -- an option for a small portion of individuals.
Again who no longer need the coverage are no longer can afford the coverage.
-- -- -- -- I mean this is awful this is a lousy economy people lost their life -- savings and you come to when you off from twenty cents on the doll.
Well if anyone can come up with a better options to help retire could help seniors retire in this country by doing something creative minds behind their life insurance -- policy.
Again hello settlement should be a last option but until there's a better option we're here at the -- -- program to help.
-- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- How can you save more which came barely make and speak -- again my settlements are just one option that might be able to help people retire more comfortable I'm really wanna thank you for coming on -- this is very very interesting subject to me at my page.
Scott page CEO of a lifeline thank you so I appreciate it thank you very much.
