for omnivorous-ga from ota-ga re question 429603 I've seen how you
answered a disability question. It was very complete to put it mildly.
Is this a question you can get into? I've sold one policy in a hurry
and cheap. I can't afford to do that again with my remaining two
disability policys. I've been told by a "disabililty expert" that
firesales are the only way insurance companys purchase their clients
policys. They have asked me to come up with a number and no hard
feelings are problems should it not be feasible for them. So I want to
give them a serious number (plus some bargaining room) but not to
spend too much doing so because I am over extended as it is with a new
young family and home I am trying to build, plus a couple of ex's and
childsupports. I also am skeptical that they would give me enough to
safely compensate me.

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Request for Question Clarification by omnivorous-ga on 18 Nov 2004 05:54 PST

OTA --

Thanks for much for asking specifically that I look at it but it's an
area in which I have little expertise.  Also, I'm tied up for the near
future.

Other researchers have suggested looking at the Net Present Value of
the cash streams: that's exactly how the company accountants will do
it.  Of course the company's likely to try to improve their own
profitability in the process.

I'd recommend looking in detail at the disability contracts to see if
they can be re-assigned?  Could a bank or other financial institution
buy the contract for a lump sum and assume the contract?  What does
your state law allow?

This is a specific instance where you're stretching the capabilities
of researchers and may be best with a financial or legal adviser.

Best regards,

Omnivorous-GA

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Clarification of Question by ota-ga on 18 Nov 2004 14:36 PST

Thank you for you response. I in fact, assigned my benefits to a bank
in order to pay for a home they owned. I also assigned life insurance
benefits as well. I don't know where I would find a bank or other
financial company that gets involved in this unusual collateral. Whn I
sold my smallest policy I thought ,"IF only I could find someone to
lend me $100,000 to clear up my debt and assign them couple thousand a
month for however long at least it wouldn't have to be final and I
could resume receiving payments at a later date than a deal that takes
the policy away from me for good. I didn't know where  to go. At the
time two years ago I didn't have the funds for a computer and thought
my health was rapidly slipping away and therefor was under
considerable preassure. I hedged my bets and sold it for 7 years worth
of future payments thinking if I don't die I will have theother two
and if I do die then I got some extra money to clear up my debts for
my family,
I realize there are all kinds of fomulas starting with figuring out
the future cash flow. Just going to a lawyer or finacial advisor sin't
a good idea as most will tell me they can handle this even if they
have never done this or dealt with the insurance companys lawyers
before.  I onced asked an insurance expert who advertises on the net
that after 30 yuears working in disabilty departments he now
represents injured professionmals filing claims if local politics in
the insurance company or industry effects their willingness to pay a
good settlement. He was answered in as  that nothing effects what they
pay except if they think they can buy your policy for basically
nothing. I disagree.

Perhaps they are asking me again because they know I'm strapped for
cash with a new house and baby. I don't know. But I do think that the
right person could probably give me a basic formula that would take me
a couple of hours to work out and go for it. This is only another
peridic thing they do every few years. I told them I would never sell
so cheaply again and told them why.

Is there a way to figure on how much more I should ask because my
income stream is tax free. If I have to use tax free bonds in the
future they don't pay alot of interest. ANd my income currently gets
me more than if I had to pay taxes whcih I might have to in the future
as well. Also because my new mortgage is a big monthly amount for me
for the next thirty years, how much is a buyout worth to me if I can
pay off this mortgage and not have to write out a check for $3500.
each month? I wish there was software for the average person for
figuring in all the factors to consider in taking a buyout on an
income stream such as mine with the unique expenses I now have and
expect in the future like college  and braces as well as  increasing
childsupport?

Thanks,

Ota -Ga

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Clarification of Question by ota-ga on 18 Nov 2004 14:40 PST

Perhaps LIVIOFLORES-GA would care to look at my questions and have to
time to help me prepare a procedure for looking at this?