If you are planning to buy life insurance or already have one, you should compare insurance at lifeinsurancedirect.com.au. Why? Because we don’t just compare the premiums and the benefits of a life insurance policy but also keep you posted on new happenings so that you benefit at every stage of life. Take for instance the latest offer. If you are retired and if you have a term life insurance policy, you may be able to boost your finances by selling the policy for cash.

This is being made possible by Australian Life Settlements, a new company that’s offering to purchase life insurance policies which payout at death. The company shall pay 15 percent of the policy value. So if you are above 65 years of age and have an insurance cover of say $500,000, you could be paid up to $75,000 provided you sign over your policy to ALS. You can also sell part of the policy only and get the remaining payout as death benefit. This would be a welcome plan for those retired individuals whose superannuation is hard hit by the tumbling investment market or even those who feel the pinch of the high premiums and feel they no longer need the cover.

There is a condition though; ALS buys policies only from those policyholders who are not expected to live beyond the next 12 years. As ALS is purchasing the policy in its entirety they would also be responsible for the payment of the premiums and hence they do not plan to buy policies for which they will have to pay the premium for more than 12 years. In other words the shorter the policyholder’s life expectancy would be, higher the payout they would be getting. There are two more conditions – experts from ALS will judge the policyholder’s health impairment. Policies of terminally ill individuals will not be purchased. Only those policies that have a cover of more than $50,000 and less than $5 million will be bought out. 

According to Angus Sedgwick, Managing Director, ALS says that most people drop their life insurance after retiring for two main reasons – first they feel they don’t need it any more and second, because as they age the premium increases.

In this regard, be informed that when you compare insurance at lifeinsurancedirect.com.au.you get the best deal so that at any stage of your life you will never feel the life insurance as a burden.

With the purchase proposal, ALS is offering the retirees an alternative to discontinuing their policies. Life insurance policy trading is not entirely new to Australia; a secondary market has been operating since 1990s in Australia, however ALS is the first company offering to purchase term life policies issued in Australia that payout only on the policyholder’s death.

In US life insurance policy trading is a US$120 billion industry however the elements there are controversial as some operators are believed to engage in policy farming wherein the sick are encouraged to purchase life insurance policies with the intent of buying them back. In Australia however companies encourage people to take life insurance only if they need life coverage.

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