When it comes to assuring that loved ones will be taken care of, there is no viable life insurance substitution. In other words, nothing compares to the standard guidelines that a term Ohio life insurance policy offers sans any surprises. For instance, Stranger Originated Life Insurance (STOLI) plans are an alternative life insurance vehicle. While the STOLI garners certain attributes, which appear to benefit the insured, Ohio life insurance consumers should beware of these misleading plans. Review the following facts about the STOLI schemes, versus the Ohio life insurance.
- While most Ohio life insurance plans are designed to protect the policyholder’s best interest, STOLI schemes generally benefit the “investor,” or sales person.
- STOLI deals were developed with the intent to avoid the Ohio state “insurable interest” law. Investors seek out senior citizens, who own an Ohio Life insurance plan more than two years old.
- STOLI schemes drive up the cost of Ohio life insurance plans.
- Since, STOLI policies have unusual guidelines, these “financial” insurance programs, can render the person carrying the policy as “overinsured.”
- Sales representatives prey on retired senior citizen to sell these STOLI policies.
- A bill went into effect on September 11, 2008, protecting Ohioans from STOLI predatory policies. Nevertheless, the law does not prevent unscrupulous insurance sales people from selling these products.
- Ohio statutes mandate that the policy must have been purchased a minimum of two years to the proposed sale of the Ohio life insurance plan. The problem is that most investors, selling a STOLI policy, plan to profit from the insured policy. They target individuals with few if any surviving heirs and people, who seem to be in poor medical health.
Mike Novelli, President and licensed insurance representative of Ohio Life and Health.com advises consumers to obtain several Ohio life insurance quotes for the best rate and to avoid the STOLI option altogether.
Visit Ohil Life and Healthl.com for a no-hassle term life insurance quote