What is a bunch of death?
Death bond is a type of investment that is due when a life insurance holder dies. If you want to get a death bond, a life insurance holder sells his insurance contract and collects part of his full value. The person who bought life insurance is then responsible for paying premiums until the insurance holder dies. Since the investor paid premiums, the main risk that the person lives longer than expected. People without life insurance can sometimes get a bond of death, but that's unusual. With a death bond, life insurance holders are able to obtain part of the value of insurance by sales to the investor or company. The buyer usually takes the age of the person, the insurance and the value of the policy before deciding how much to pay the insurance holder. He / she pays monthly life insurance premiums. Bond recipients generally like it, because they are canceled from the financial burden of life insurance. Until the bond holder does not die, the buyer is legally obliged to continue withPayment of premiums; Since 2011 in the United States, the insurance and insurance value cannot usually be upgraded to the insurance holder or the buyer after the issue of the Death Bond.
Death bond can make a lot of money for the buyer, but there is one main risk. The buyer is obliged to pay all premiums and there is a chance that the insurance holder will live longer than expected. This forces the buyer to continue paying premiums, even if more than politics pays. To alleviate this potential loss, most investors buy many life insurance.
While Death Bond is generally issued to someone who already has life insurance, there is AOTH this investment plan, which includes focusing on people who are not holders of life insurance. The investor will contact someone without life insurance and promises to pay part of the amount of life insurance if the person removespolicy. As with the more common version of this investment plan, the investor is responsible for all premiums. This means that the seller usually pays very little or nothing to receive a bond.