Hey Guys, Whats The Way To Do This Or Name Of It

rotarex

ok, i really don't know the name of the title i am looking for here, but try to understand what im saying, i know only a handful of you guys will possibly hear about it or know how to do it,


There is a house that we sold an aquarium to $80,000 to be exact, obviously this is a really big and expensive house hmmm about 15,000 sq ft around there, they got a 2000 floor sqft solarium with a pool and tropical plants, with heated floor, (so all year around its the Caribbean) almost every square meter of this place is custom, from the front it looks like any new home in the subdivision only when you go inside you realize its no way close to the other 2500 sqft homes around it

now here is the tricky part this house cost 3 mill to build , so i taught maybe these people won the lotto, my uncle now tells me after 3 years what they did, but i didn't quite understand

he said, "they sold there 400,000 home, and has some life threatening disorder where he can die any time and took out his insurance money to build the house, but if he dies from the problem the family no longer get that house.................

can anyone elaborate this thanks

__________________
Custom Decks
Custom aquarium all salt water
Renovation
next on my list............planting trees for all those material i used

TimelessQuality

What's the question?

__________________
-Steve

"The most beautiful thing we can experience is the mysterious. It is the source of all true art and science." ~ Albert Einstein

rotarex

i dont even know the question my self thats why i asked to elaborate it, then i can ask a question

__________________
Custom Decks
Custom aquarium all salt water
Renovation
next on my list............planting trees for all those material i used

SDC

kinda sounds like he is spending his life insurance now so he can enjoy it...

__________________

rotarex

yes something like that, but how do you get 3.5 mill out of thin air ?

__________________
Custom Decks
Custom aquarium all salt water
Renovation
next on my list............planting trees for all those material i used

TimelessQuality

Obama Obama Obama

__________________
-Steve

"The most beautiful thing we can experience is the mysterious. It is the source of all true art and science." ~ Albert Einstein

neolitic

Wall Street

__________________
Put your location in your profile!
(Sorry....it seems there really are dumb questions)

Bill Z

Sounds like you are searching for terminology.
Could be:

an "accelerated payout" on a life insurance policy,

a "viatical settlement" (where some outside company buys the life insurance policy and will get the total death benefit when the insured dies. They pay the insured some percentage of the death benefit up front so they can use it while they are still on the green side of the grass.)

or a "reverse mortgage" (less likely on a $3m house).

Probably bought a $400,000. single premium life policy for a huge payout, then did the accelerated or viatical. Hard to imagine how he got a life insurance policy in that amount if he was in poor health.

Bodger

There's a movie with John C. Reilly called "The Settlement" that is all about the viatical settlement insurance companies.
Very popular amongst AIDS victims because they could use their policy proceeds for hospice care.

rotarex

Hey Bill that's what it is thanks, Bodger whats the name of that movie? i want to "loin" these things

__________________
Custom Decks
Custom aquarium all salt water
Renovation
next on my list............planting trees for all those material i used

Bodger

It's called "The Settlement" starring John C. Reilly, Kelly McGillis, William Fichtner.
It's a dark comedy farce, about two guys who get involved with viatical settlements with dying AIDS victims, only to find that the "cocktails" come along and make the sufferers live longer and in some cases, go into remission.
In the movie, the viatical settlements have a time frame, and if the person outlives that time, the viatical doesn't pay off and the issuer of the viatical settlement is unable to collect the death benefit of the policy they funded.

I don't know if it's legally accurate, but it's an entertaining film. Amazon sells it cheap.