Stranger Oriented Life Insurance Policies

Stranger Oriented Life Insurance Policies

http://insureme.us/stranger-oriented-life-insurance-policies/

Stranger-Oriented Life Insurance Policies (STOLI) refers to the sale of a life insurance policy to a third party. The owner then, decides to sell the policy for cash, while the buyer becomes the owner of the policy.  This means that they get to pay future premiums, and wait for the payout when the insured dies.  STOLI is known to be rampant in the states of Arizona and Florida and the victims are elderly individuals. They are hurt in several ways by this scheme, in that they may lose the ability to purchase another insurance policy, should they decide to do so again.  The act of selling an insurance policy is one of the violations that an insurance company abides by, and this will put the senior in a difficult position.  The insurance company can even sue you for this.  Moreover, the money that the senior receives from this transaction is also considered taxable: it’s either you pay taxes, and expose the scam, or not pay taxes, and be indicted for tax evasion.