ushdadude
Level 2 Member
I decided that it's finally time to get some life insurance and one of the salesman I spoke with had an interesting idea.
He mentioned that there is a company that offers premium financing to individuals who would not normally qualify for that type of policy. They do this by forming groups of 100-150 individuals. Basically, the insured pays in for the first 5 years and the bank pays in for the first 10 years. After that, the rate of return on the investment (in this case it is tied to the S&P) out-performs the interest of the loan. In year 15, the remaining principal is paid off and you're left with a policy that continues to increase.
Thoughts?
He mentioned that there is a company that offers premium financing to individuals who would not normally qualify for that type of policy. They do this by forming groups of 100-150 individuals. Basically, the insured pays in for the first 5 years and the bank pays in for the first 10 years. After that, the rate of return on the investment (in this case it is tied to the S&P) out-performs the interest of the loan. In year 15, the remaining principal is paid off and you're left with a policy that continues to increase.
Thoughts?