Minden Real Estate

Business Updates for the Real Estate Industry

Secondary Market For Life Insurance Settlement Tax Affected

With the corporate tax has been secretly quietly and unnoticed by many to sell a change in life opened. Under certain conditions, now in the sale of life insurance and the flat tax is due. This is not least by pushing the insurance industry seen through the secondary market because they have already lost some terminations of life insurance. Affects life insurance policies that were completed before 2005 and sold before the end of a 12-year period, contracts that have been completed to the financing of a property leased to third parties with an insurance company for repayment. It is a big business for the secondary market life insurance, life insurance terminated at about 1.2 million annually. Was a life terminated in the past has mostly benefited from the cancellation of the life insurer.

In the reversal trigger a flow is usually the commission from the agency, administrative, and financial protection and bestowed the policyholder usually a low Surrender value. The secondary market life insurance generally pays 2-15 percent of the policyholder when a sale of more than insurance. In addition, the life insurance continue to be paid and therefore is not have a capital gains tax due. This is being addressed by the corporate tax on the sale of life insurance and in the future, the flat tax is due. This, however, only the amount covered by the flat tax, where the selling price is about the contributions paid. The secondary market, while accepting a possible sale of the old rules but basically their business model is not in danger, because the secondary market will probably pay even more in general, more than the insurer. There are even ideas as to develop a new business model that allows a sale to private individuals. This sale would be taxed only in the profit and thus make it more interesting for the private man than the previous scheme.