‘Layers in the House’ host explains how you can sell life insurance to strangers

Yes, you can sell your life insurance policy to a stranger, says GA Supreme Court

The Supreme Court of Georgia has ruled that it is okay to buy life insurance for yourself with the intention of selling it to someone else.

Bital payments, or life payments, are often used by people who need money for medical expenses. The case, which a judge ruled in his October, centered on an HIV-positive person who took out life insurance on himself in 1999 but did not disclose that he was HIV-positive. He bought it with the intention of selling it to a third party, and Kelly Couch sold it and transferred his $500,000 insurance policy to a “friend” he never actually met. The man, who knew of Couch’s HIV status, paid the premium and claimed the death benefit in 2005.

Jackson National Life Insurance Company denied the allegations and sued in federal court for unlawful life-betting, which voided the contract.

The judge overturned the lower court’s ruling, recognizing the regulated practice. The opinion also noted that the “illegal gambling” claim was based on outdated laws.

“In the eighteenth century, as a form of gambling, it became common in England to insure the lives of strangers. Because the person who bought this ‘insurance’ had no interest in the underlying ‘asset’, the life at stake.”

Bryan Freeman, president of Habersham Funding in Atlanta, said the life insurance settlement will pay cash for life insurance policies that someone may not need or can no longer afford.

“Often this is the best financial option for someone, but a lot of people don’t know it,” says Freeman. “His over 90% of all life insurance policies expire before someone dies. So they don’t pay a death benefit.”

A life insurance settlement is an option for people to withdraw some money from their life insurance policy before they die or before the policy expires if they are unable to continue paying.

Freeman says only the elderly and seriously ill are eligible to sell insurance. Life expectancy is a major factor, so people under the age of 70 usually have to have serious health problems. The seller receives an amount less than the full death benefit of the policy.

“People are using it to pay their mortgages, car notes, and medical bills,” says Freeman. “I now have a deal with an elderly person. He will give them money while he is alive, rather than waiting to die to give his grandchildren a death benefit after he has passed away. and enjoy it.”

Freeman, who has worked with these kinds of settlements for decades from his office in Buckhead, calls it “a real shame” that more and more people don’t know about them. He realized his one of the first settlements of this kind in 1989.

“What I’ve done over these decades has helped a lot of people, and I’m proud to have been able to help people,” he says. “This business has been fun.”

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