life insurance settlement

What Are Life Insurance Settlements?
Life Insurance Settlements allow a life insurance policy owner to sell an existing policy to a financial institution, called a provider, in exchange for a lump sum cash settlement. The amount paid for the policy is a discounted percentage of the policy's net death benefit and represents the present day value of the policy. This purchase price is determined by considering the insured's estimated mortality (life expectancy) and the associated cost of premiums to keep the policy in force for that timeframe.
There are two (2) types of life insurance settlement transactions:
1. Life Settlements create immediate liquidity from a non-performing asset, allowing policy owners to cash out of unwanted, unaffordable or obsolete life insurance policies insuring a senior generally over age sixty five (65).
Click to review our Life Settlement Overview.
2. Viatical Settlements someone facing a terminal illness to utilize the present day value of his or her life insurance policy to ease the financial burdens that can be caused by the high costs of medical care.
Click to review our Viatical Settlement Overview.
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LIFE INSURANCE SETTLEMENT

A life settlement is a financial transaction in which a policy owner possessing an unneeded or unwanted life insurance policy sells the policy to a third party for more than the cash surrender value (cash value offered by the life insurance company). The purchaser becomes the new beneficiary of the policy at maturation and is responsible for all subsequent premium payments.
Life settlements are an important development in that they have opened a secondary market for life insurance in which policy owners can access fair market value for their policies, rather than accepting the lower cash surrender value from the issuing life insurance company.
Generally speaking, life settlements are an option for high-net-worth policy owners age 65 or older. Independent estimates report that among this group, 20% of policies have a market value that exceeds the cash value offered by the carrier. And while many policyowners are unfamiliar with life settlements until a financial professional mentions the option to them, the concept has gained attention from high-profile proponents such as Warren Buffett, former U.S. Representative Bill Gradison, and numerous media sources including The Wall Street Journal, Time Magazine, Business Week and The Economist. A growing number of experts now believe that informing clients about offering life settlements should fall under the fiduciary duty of a financial adviser.
Life Settlements - Learn. Empower. Succeed.SM
Life Insurance Settlements, Inc. (LIS) is one of the largest and most experienced brokers in the life settlement industry, as well as the number one choice for financial professionals seeking solutions for their Senior client life settlement needs. Our accomplished knowledge of life settlements, combined with solid relationships with multiple funders is used as an advantage; one that virtually offers your client one of the largest market values for their life insurance policy. We will negotiate the highest settlement offer on behalf of you and your client.
The senior management team at our home office has been involved in the life insurance secondary market since 1993. This experienced team of experts understands the needs and expectations of the financial planning and life insurance industries as they apply to our core competency—life settlements. LIS provides the tools, support and education necessary for the financial or insurance professional to offer these as a complimentary service. This formula has helped our partners build a significant profit center without changing their current business plan.

LIFE INSURANCE SETTLEMENT

The Life Settlement Institute today announced that its support for the secondary market for life insurance includes those premium finance programs which utilize the secondary market value of life insurance to enable people with a true need for life insurance to tap into the market value of life insurance. These programs allow policyowners to acquire coverage which provides needed protection for their beneficiaries. The LSI made its announcement in response to questionable elements of certain new non-recourse premium finance programs which may violate insurable interest, usury, life settlement, premium finance, rebating or other insurance ...
WASHINGTON -- The Life Settlement Institute (LSI), the leading organization representing secondary market providers for life insurance, applauds recent federal and state legislative efforts aimed at stopping investor-initiated life insurance schemes that would misuse tax-exempt organizations for their own profit. With a retroactive effective date of May 3, 2005, the recent legislation announced by Senate Finance Chairman Charles Grassley and Senator Max Baucus, ranking member, further demonstrates that these abuses will not be tolerated.
The Grassley/Baucus legislation would impose a 100 percent excise tax on the acquisition costs of any "applicable insurance contract," ...

LIFE INSURANCE SETTLEMENT

A life settlement is a financial transaction in which a policy owner possessing an unneeded or unwanted life insurance policy sells the policy to a third party for more than the cash surrender value (cash value offered by the life insurance company). The purchaser becomes the new beneficiary of the policy at maturation and is responsible for all subsequent premium payments.
Life settlements are an important development in that they have opened a secondary market for life insurance in which policy owners can access fair market value for their policies, rather than accepting the lower cash surrender value from the issuing life insurance company.
Generally speaking, life settlements are an option for high-net-worth policy owners age 65 or older. Independent estimates report that among this group, 20% of policies have a market value that exceeds the cash value offered by the carrier. And while many policyowners are unfamiliar with life settlements until a financial professional mentions the option to them, the concept has gained attention from high-profile proponents such as Warren Buffett, former U.S. Representative Bill Gradison, and numerous media sources including The Wall Street Journal, Time Magazine, Business Week and The Economist. A growing number of experts now believe that informing clients about offering life settlements should fall under the fiduciary duty of a financial adviser.Life Insurance Settlements, Inc. (LIS) is one of the largest and most experienced brokers in the life settlement industry, as well as the number one choice for financial professionals seeking solutions for their Senior client life settlement needs. Our accomplished knowledge of life settlements, combined with solid relationships with multiple funders is used as an advantage; one that virtually offers your client one of the largest market values for their life insurance policy. We will negotiate the highest settlement offer on behalf of you and your client.