Below are some of the most
"FREQUENTLY ASKED QUESTIONS"
about our Pension program.
How long does the process take?
Two weeks could pass to close some transactions.
Because other transactions include the purchase of new life
insurance, the time for funding could extend to three to four weeks.
Do I need perfect credit to qualify?
No. Perfect credit is not required, good credit is.
Do I need to own a home to qualify?
No. Home ownership is not required. In fact, stable renters
are often strong qualifiers.
Why Isn’t the amount of money paid to me
[the pensioner] equal to eight years
worth of payments for an eight year contract?
Would you rather have 95 cents now or a dollar in one year? 70 cents
now or one dollar in three years? 40 cents now or a dollar in eight years?
The determining factor is the length of time. We are
purchasing future dollars that are not the same
value as current dollars. This evaluation is called "present value."
The time value, or present value, of future dollars is less
than their face value. The computer system considers all of
the payments to be received during the eight year contract
and then calculates the amount of the lump sum estimated payment.
What happens to the COLA (Cost of Living Adjustment) annual increases?
The COLA annual increases are used to pay down the life insurance premiums.
This is very useful since it negates any additional out of
pocket expenses for the pensioner. If insurance payments
are not required, on the first of each month, all COLA payments
are returned to the pensioner electronically, just as
his current pension payments are.
Can a relative or other person act as sponsor or guarantor?
In some cases, we have accepted a guarantor when the applicant did not meet the qualifications of the program. Strong credit and stable financial
history are mandatory for a pensioner as well as a guarantor.
Are there ways to repay the loan early?
This program is not a loan. The program is a contract for which
time is committed by the funding sources. Therefore, the contract
exchanges a lump sum of cash for a commitment
to pay future payments when they are received, for a specific period of time.
Can I use existing life insurance to meet the insurance requirement, or must new insurance be purchased?
Any good insurance policy is acceptable even if it has been
in place prior to the closing of this transaction.
Are there any age limitations?
None at all. Only the cost of the required life insurance,
which is part of the pensioner's costs, impacts the economics of the transaction;
if insurance is already in place and the economics of the
transaction still appeal to the pensioner, any age will be accepted.
