By the secondary market for life insurances one understands to sell the possibility of life insurance contracts before expiration of the policy to an investor. At present only the possibility of the sale of capital life insurances exists in Germany.

Bases

If an insurant wants to terminate an insurance contract before expiration of the contract running time, the possibility of the notice of the insurance exists.

The insurance company in the case of a premature notice determines the repurchase value gained up to then less an amount cancelled.

Speculative purchasers of life insurances regard the repurchase values from view of an investor, accumulated up to the notice, into an existing contract and determine according to financialmathematical methods "the worth of the policy ". By the insurance company the repurchase value set disbursed to the insurant or does not correspond "to the internal "value of the policy in many cases. On the side of the salesman the goal insists of selling the insurance contract at a price that is higher than the repurchase value determined by the insurance company.

History

The thought to sell requirements from life insurance contracts was sketched already many years ago. Already in the year 1844 insurant in Great Britain could sell their capital life insurance over the Londoner finance brokers Forster & Cranfield by auction to interested investors.

In Germany however only some speculative purchasers are active and could a secondary market for "used "life insurances to establish since 1998.

Advantages for the salesman

If an insurant wants to separate from a policy, it has the advantage during the sale that speculative purchasers can make an offer lying over the repurchase value for it. The tax treatment of sale can prove as advantage in many cases, since with a notice of the policy before expiration of 12 years the calculation-moderate and except-calculation-moderate interest contained in the repurchase value becomes taxable. According to data Federal Ministry of finances is not taxable the sales of the insurance for the salesman.

Articles in category "Secondary market for life insurances"

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