How much should the policy’s face value be?
A. Generally, a policy with a face value of $50,000 or higher may be eligible to
convert into a life settlement.
Q. Will I have to pay any premiums after my policy is sold?
A. No, once the policy is sold, you will have no future premium obligations
whatsoever.
Q. What if I want a life settlement, but still need or want life insurance?
A. This is an individual decision. Some people like to have some coverage
after selling their policy in a life settlement. This is absolutely possible. We are
happy to discuss your options, or you can consult your agent or financial
advisor.
Lifeline Plans to Buy Policies for U.K. Hedge Fund
Posted January 15, 2009 4:50PM PST
The chief executive of the Lifeline Program, an Atlanta-based provider, said his company is negotiating with a U.K.-based hedge fund to invest a “substantial” amount in life settlements.
William Scott Page, chief executive of Lifeline, said a confidentiality agreement with the hedge fund prevents him from naming it. Page said this will be the fund’s first foray into the life settlements market. He expects to begin buying policies for the fund in the first quarter.
Page said he believes the fund intends to buy the policies with the intention of holding them until maturity or until insureds die and the death benefits are paid. But he said that Lifeline is aggregating the policies with the option to sell them for the hedge fund.
The company said in a statement that despite continued worldwide financial market turmoil, interest in life insurance settlements as an institutional investment is growing in the U.K.
“I think people are looking for non-correlated assets,” Page said. “I think we’re going to see capital come back into the industry.”
There are may people who have opinions on this matter…we know that it is unlikely that they all have the best answers. LifeSettlementsCorp is a trusted and established broker of these deals.
You may be asking if this is legal the answer is yes.
Is a life settlement legal?
Yes, under United States Supreme Court precedent stretching back almost a century, a life insurance policy is considered your personal property. Like any other tangible or intangible personal property, you can sell it, trade it, or give it away. Your insurance company generally has no right to block or question your assignment of the policy rights.
1. Senior citizen with financial needs consults with an advisor, decides to sell his or her policy.
2. Client & advisor select a broker who works with institutional providers.
3. Broker submits case (and client releases medical information) to various providers.
4. If policy meets criteria for a life settlement, providers send offers to the broker.
5. Client accepts their preferred offer.
6. Client and advisor complete the provider’s closing package, and return essential documents.
7. Provider places cash payment in escrow and submits change of ownership forms to the insurance carrier.
8. Paperwork is verified and funds are transferred to the policy seller.
Some times people mis-spell the word life insurance settlements. Such as we did above. OR THEY call it insurence. Another common misspelling.
Tags: Life insurance
There is a lot of anticipation about the new year. Be sure to keep an eye on LISA to see what there is to offer. Of course pay no attention to this article on the industry. It has no bearing whatsoever.
Derek Welsley has this to say in his article. The introduction of life settlements has created a secondary market for life insurance policies in which policy owners can receive a fair market value for their policies. THis is the point. Holders can find good and true market values if they sell in the secondary market. In the past policy owners who no longer wanted their policy had the option to either…
A.) Surrender the policy back to the insurance carrier for its Cash Surrender Value
B.) Let the policy lapse and receive nothing.
Now the policy owner has the option to…
C.) Conduct a life settlement and receive a payment that typically doubles or triples the Cash Surrender Value offered by the Insurance Carrier.
Derek Wilsey - has most of this right, although I would say that the best fit for you needs is lifesettlementscorp.com
Tags: Article on Settlements
LISA Broker Summit
Orlando, FL
This year, LISA will bring together Broker members to examine today’s business practices and political issues. The one day program features general sessions with speakers addressing legal, investment/financial, legislative and regulatory issues.
Mark your calanders for the may 6th - 15th Annual Spring Conference
Where? New York, NY
Designed to bring members the latest issues, forums and new developments. LISA’s annual conferences are the biggest life settlement conference drawing over 500 attendees. This conference also includes discussion panels, research and development presentations, guest speakers, and above all, plenty of opportunity to network and make deals.