Wisconsin Man Offers New Incentive to Purchase His Home: His Life Insurance Benefits

His home in Rural Whitehall WI has been on the market for over 2 years. 69-year-old Bob Fanning has decided to up the ante so to speak. He is offering a unique incentive to anyone willing to purchase his home: $500,000 if he dies in the next 10 years.

It took some convincing on Mr. Fannings part. Both his realtor and attorney were not so certain the scheme was totally legal. But in the end it was determined that Bob could offer the unique incentive to anyone that would come forward and purchase his home, priced at $498,000. The two story, 5,600-square-foot home has four bedrooms and four baths and sits on a 30 acre parcel of land.

"Life's a gamble, this is a gamble," Fanning said.

The purchaser will be named as the beneficiary on a life insurance policy that Bob has taken out. There will be an irrevocable trust set in place upon the closing of the sale which will ensure that payments on the policy are made for the full 10 years. In the event Mr Fanning, now 69, dies within 10 years of the purchase date, the homeowner will receive $500,000 - essentially paying for the cost of the home they bought. There is a provision in the policy, however, voiding the payout should Mr. Fanning commit suicide or be a victim of a homicide.

"It's an unusual incentive, but it's certainly interesting," said real estate agent Wayne Peters, whose company has the listing. "It's hard to get people's attention in this market. There are a lot more sellers than buyers."

Here are the remarks on the listing agents information sheet regarding this home:

EXTRAORDINARY INCENTIVE! Close on this outstanding property on Seller's terms-69 yr old Seller will name you beneficiary of a recently purchased 10 yr term life insur. policy for $500,000 on his life! Exec. retreat nestled on 30 wooded Ac. Custom built w/handmade cabinets, stairs, hardwood floors. Some walls finished in cherry walnut, ash, maple, etc. 5,600+sf finished. 3-car att. gar. is heated. Metal lined timer frame 52 x 74 gar/shop/stor. bldg w 3 OH doors, 1/2 bath and sawdust fired boiler

So, what do you think? Is this the beginning of a trend? With more and more homes languishing on the market, is offering something like this a good thing or does it strike you as somewhat ghoulish?