Finding the Right Life Insurance Connecticut
Life insurance Connecticut is very important to all the residents of the state. You should be careful to stay away from the fraud that can take place in the insurance industry. The Connecticut Insurance Dept. and the National Assoc. of Insurance Commissioner want the policy holders to be aware of the situation and stay away from the life insurance policies that are perpetrated illegally.
There are two types of life insurance Connecticut; the Viatical life settlements and life settlements. Life settlement tends to occur when the owner of the life insurance Connecticut policy sells it to the third party. The third party now becomes the actual beneficiary / owner of the life insurance policy. The new owner pays the premiums and would collect the benefit when the actual policy owner expires. This is because the actual policy owner is regarded as the ‘insured’.
The Viatical settlement is somewhat similar to life settlement, except of the fact that the original policy holder is terminally sick. The questions that are raised by the people are why anyone would actually sell her or his life insurance Connecticut policy. Many reasons are cited for this, the prime being financial. If the original policy owner is running into a financial difficulty then he might sell the life insurance policy to a third part for a cash reward and this is legal practice, but needs to be sold through the life insurance broker. The third party has to pay the broker’s commission.
Instead of selling the life insurance policy, the policy holder can also exercise accelerated death benefit provision, which can pay a substantial amount from the policy’s death benefit. Also the cash value of the life policy can be used as a security while obtaining loan from financial institutions or banks.For more information in life insurance and how to obtain a plan, call InsuringCT.com at (877) 227-3770.