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All thank you very much indeed -- If congress does not act on January the first few the -- and the estate tax exemption level rotunda just one million dollars with a maximum tax rate of 55%.
On everything overlaps.
-- page from the lifeline program is here he's back actually we had him -- -- Great performance not welcome back it's a pleasure to be here thank you -- are trying to work this out.
You run a business -- you blind life insurance policies from people before they passed away correct you give a 2030 cents on the dollar.
And -- basically yeah gambling on when they die but you know they get the money up front a fraction of it and you get the policy and it's paid off when -- agencies when they die.
If you raise the estate tax to 55% on everything over a million what does that -- your business.
I think it's great for our business because of the ceiling stays at the five billion dollar level word is now I think there -- a lot of people that are over insured because they're states never gonna meet that five million threshold.
So we think people be rushing this -- life insurance policies to get out of the state get the funds needed today.
So the lower the threshold lower it down to a million and a lot of people will be getting.
Money which they don't actually need.
What would at least come up tell me again I'm -- law.
Let's start heated -- -- this if it dropped to the million dollar threshold which we believe it will I think there'll be people who need to sell -- life insurance because and -- -- years ago.
And -- all products are -- More expensive and outdated today you -- buy new life insurance for lower rates system what you consider selling their old policy.
Get in the proceeds from the life so went and buying a new policy -- more appropriate to take into account -- -- tax tax law so good field business very good for our business.
You think that this will actually go to just won the million dollar exclusion -- as low as he's been in decades.
And I -- gonna unfortunately I think it will just Hitler congress is so divided that is going to be very difficult to continue what we're no with a but the bush tax here.
A five million dollar ceiling I think it's gonna drop to the million dollar level.
But if I'm suppose I've got a life insurance policy.
And I sell it to you I get some money out of it before I don't -- Doesn't that add on to my -- on with a lower threshold on more likely to cross that threshold 'cause -- -- among.
Well you know first becomes a very emotional issue when you talked about death and dying in life insurance.
But if you receive the proceeds from the life suddenly you are taxed but you could just attract -- the -- -- used to track all the premiums you paid into it and if you're talking about a settlement between twenty to 30%.
The tax amount we'll can be 15% it's going to be very small than most cases you're better off selling your policies and enjoying your life because who knows what will happen in this economy.
Do you develop a bedside manner when -- asking people to sell his sell to -- that life insurance policies before they passed away.
Well we do accept this is of the very emotional and very emotional transaction no we're not robbing people of their their funeral insurance.
You know I was gonna bring my circle with people they -- let me up to SA -- life or else can we don't know who that is kind of organ music thank you very -- just a repeat you pay about twenty to thirty cents on the dollar so if somebody was getting that getting a million dollars when they -- you -- -- -- to 300000 upfront correct and if you take into account they had a policy for ten years let's -- -- of a million dollar policy with the ten year life expectancy was -- five year old.
They pay 50000 dollars -- up to the point is sold to us now we have to continue paying those strings for the remainder of the year.
So we take on the risk OK so we may get 200000 -- policy and the basis may be.
And exactly 200000 what you paid in the previous but now we're gonna carry that premium for ten -- -- we can pay another 500000.
Dollars to keep the policy in force.
So we're taking a risk that you might dying ten years and you might not so hopefully if you sold your life insurance policy I'm sure you'll be -- -- you off gambling upon mine.
Demise gambling on -- -- Scott -- always interesting facts are doing --
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