Clients, agents and insurers are all getting burned by wet ink deals. “Wet ink” policies, also known as contestables, 3% deals, flip deals or wet sales are transactions where an insured takes out a life policy and sells it on the secondary market, often within a week of issue, for a specified percentage of face, usually in the 3% range. They are called “wet ink” because the paper is sold while the ink is still drying on the contract. Typically the insureds can walk away with $300,000 on a $10,000,000 policy. Crafty agents and promoters sell these plans as free money, essentially telling the client they can get a large check with no downside, and uninformed seniors have bought them by the truckload, unaware of the risks.
Know the risks associated with these types of premium financing programs:
- May be a violation of state insurance law or regulation·
- May raise your risk of securities regulation and litigation issues·
- May put you at risk for unexpected tax fees
Ask your Agent to fully explain all of the potential consequences.
Finance For Life prides itself on being able to offer a variety of loans, including Hybrid premium financing. Our experienced team will find a reputable premium financing plan that fits your specific needs.If you have questions or inquiries on premium financing, please contact us direct:
Phone: 877-763-0098, visit our web site at www.financeforlife.com <http://www.financeforlife.com/> or email info@financeforlife.com
