Posts Tagged ‘life settlements’

How to Select A Life Settlement Broker?

Sunday, November 27th, 2011

One of the most significant stages in life settlement process is deciding the right life settlement broker to use. The following points will help you make the best decision. At the end of the day make the choice that you are most comfortable with.

Independence:

The brokers impartiality is unquestionably the first consideration you should make when determining on the right broker. This factor alone will really drive the actions of the broker ensuring that your interest will be placed above theirs. This makes the job of the broker unconflicted and as a result will mean that you will finish up with the most appropriate options.

Certification:

Many states still do not have stringent barriers regarding who can become a life settlement broker. Unfortunately, they are not mandated by law to undergo any licensing. So to play it safe, make sure that the one you decide knows the trade and is a licensed broker.

Time commitment:

Choose a broker who has enough tolerance to explain you all about the settlement. An ideal broker is one who teaches you, gives you many ideas to choose from, inform you of the steps taken, etc. If someone is pretending to be a busy bee, then you can very well suspect something irregular.

Ethics:

The sensitive nature of the information you will be providing will require the brokers with highest professionalism to ensure that your information remains undisclosed and properly utilised. A specialist broker will respect your privacy and adhere to regulations and laws even if they are not legally bound to. The private details will include medical information collected by a medical professional and also evaluation of existing health check records.

Commissions:

Another equally valuable point is the method he calculates his fee. There are several techniques of calculating life settlement commission and the charge you pay will be significantly different under each approach. Therefore, choose a broker who follows the value created system. Under this technique, you reach agreement to pay a specific percentage (usually 30%) of the extra amount they create you for surrendering the policy. In other words, the amount over and above what you could have earned by surrendering to the insurance company.

Life insurance settlement becomes important particularly in the current situation of economic crisis where senior citizens are severely affected. If you select a life settlement broker after taking into consideration these points, you can be confident that the deal you get into would be the best one offered. A clever life settlement broker will help you create considerable value.

The above factors are just some of the significant considerations when choosing a life settlement broker. The best way to make a choice is to meet the broker and pose lots of questions and make sure you are at ease with the broker you will be working with.

Find out more about how a life settlement broker can help you achieve your financial goals. Visit a life settlements information website to learn how you can choose the best life settlement broker.

Tags: , , , , , , ,
Posted in cheap life insurance | No Comments »

Top 10 Life Settlement Stories Of 2010

Tuesday, November 16th, 2010

The life settlement world has seen an interesting 2010. As it comes to a close, some of this year’s events can be viewed not only as a barometer of the industry throughout the year, but also as a significant indicators of its future. Below are the ten biggest life settlement stories of 2010, in no particular order.

1) $100 million life settlement fraud case cracked. While fraud has been linked to life settlement investments in the past, the sheer size and scope of this case is hard to ignore. It features an 18-count indictment for [the] alleged roles in a $100 million fraud scheme with more than 800 victims across the United States and Canada.” Unfortunately, allegations of fraud continues to shape the perceptions held by consumers, regulators and investors alike.

2)SEC report suggests life settlements be defined as securities. The SEC’s Life Settlements Task Force recommended that the Commission “consider recommending to Congress that it amend the definition of security under the federal securities laws to include life settlements as securities.” Changing federal securities laws in this way would force life settlement intermediaries under the SEC’s authority and necessitate FINRA registration.

3)Zang v. Alliance Financial Services of Illinois, Ltd. In September, an Illinois court made a much talked about decision when it ruled that in essence, life settlements are not securities when only a single investor is involved. However, as renowned life settlement legal expert, Brian Casey pointed out, “[industry participants] should limit [their] enthusiasm for the ruling until additional courts have had the opportunity to adjudicate similar issues with fact patterns not as unusual as those set forth in Zang.”

4) LISA leadership change. After stewarding the Life Insurance Settlement Association (LISA) since 2001, Doug Head announces he will retire as executive director at the end of this year. Darwin Bayston, who has experience as a consultant with AVS Underwriting, and his own firm Life Settlement Consulting & Management, steps into the position at a time of enormous market and regulatory changes.

5)Invescor closes doors. A leading life settlement broker with strong ties to the broker dealer community cites slow market volume and a difficult selling environment as reason for shuttering business.

6) State regulation takes effect across the country. California, New York, Illinois, NH, Oregon, Rhode Island, Vermont and Wisconsin all saw new legislation take effect during 2010. While the new laws were expected, the legislation has changed compliance and disclosure practices in major markets such as CA, NY and IL.

7)Life Expectancy Providers form focus group.”Advanced Underwriting Solutions, AVS Underwriting, Examination Management Services, Inc., ISC Services and 21st Services form group to provide a comprehensive and consistent set of best practices and performance standards to all longevity markets that may benefit from life expectancy and mortality information.” The goal is to present this information to the various life settlement trade associations for acceptance and adoption. Noticeably absent from the focus group was Fasano Associates.
8) Goldman Sachs exits the life settlement industry by closing Longmore Capital. Goldman Sachs was not the only investment bank which exited the industry or significantly downsized its footprint in the life settlement space during 2010. However, its departure may have been the most prominent due to Goldman’s broad activity in various capacities across the industry.

9)Fortress Investment Group agrees to purchase a multi-billion portfolio of life settlement policies from KBC Bank, N.V.. Fortress Investment Group, a noted hedge fund, signals confidence in life settlement market by purchasing a $6.2 billion portfolio of life insurance policies. While the portfolio was distressed, the acquisition nonetheless is a meaningful demonstration of new confidence in the life settlement market and a firm commitment of significant capital.

10)Life Settlement Provider begins requiring paramedical exam for life settlement transactions. This change, if adopted by more providers and investors, has the potential to fundamentally change the life settlement paradigm. It raises a number of questions moving forward such as; How important will life expectancy providers be? Do exams give additional confidence to investors? How will the transaction change? Or even; Will this dissuade some insureds from participating in life settlements?

2010 has been a dynamic year for the broader financial services sector, but acute forces have greatly affected the life settlement industry. Bullish and bearish sentiment have influenced market activity in a short span, while regulators and investors have attempted to adapt to the changing environment. Looking ahead, it is difficult to predict what the life settlement industry will be like in 2011. However, it is safe to say the changes we saw this year will have a lasting impact for the foreseeable future.

Looking to find the best information on life settlements, then visit technorati for the latest secondary life insurance headlines.

Tags: , , , , ,
Posted in cheap life insurance | No Comments »

Important Life Settlement Investments Information

Saturday, November 13th, 2010

Life settlement investments have, over the last several years, been gaining in popularity. A person with a life insurance policy sells it to an individual or group. Both groups have an opportunity to make money from this type of investment.

Life insurance policies have been popular for many years and a lot of people carry active policies. There are some individuals that have come across difficult financial times and are unable to still pay their monthly premium. There are groups that will purchase that policy from the policy holder for a price between the face and cash values of it.

The first party in the transaction is the individual with the life insurance policy. The individual may need money for various reasons but will seek to raise the money by selling their policy. The person, based on their health and age, will have their policy purchased for an amount close to the face value of the policy.

The next group involved in this investment is the life settlement provider. The provider is the entity that purchases the policy from the individual insured. They normally purchase many policies to balance them over time. Many states require that the purchaser of the insurance policy be a licensed provider in their state.

A broker acts as an intermediary between the insured individual and the provider. They conduct their job much like a real estate agent would, as the go between person between the person selling and buying property. Like the provider there are some states that require a broker be licensed to do business there.

The person that invests money in this process is a life settlement investor. They will either work with the provider or possibly be the provider. If they are two different parties then there will normally be a contract outlining the transaction of cash for a specific policy.

The deal of a person with a life insurance policy selling it to another party is a life settlement investments. The holder of the policy will not get the full face value of it but they will receive an agreed upon amount prior to the policy being cashed in. This may give them assistance in paying any bills or doing anything they needed money for.

Looking to find the best information on life settlement investments , then visit http://www.amritafinancial.com/life-settlement-investments to find the best advice on investing in life settlements.

Tags: , , , , , , ,
Posted in cheap life insurance | No Comments »

The Life Settlement Market Will End In Two Years

Wednesday, November 3rd, 2010

An article by Lance Wallach appeared on the Gerson Lehrman Group website claiming the life settlement industry would die within two years. His comments set the life settlement forums, blogging community and pundits into a frenzy. While Wallach made a number of accurate observations, the pessimistic conclusion drawn for the life settlement industry is built on faulty logic at best.

Wallach reasoned that because the past couple of years had seen low offers and lack of bids for policies in the secondary life insurance market that “the future of the life settlement market is dim”. However, the conditions that dragged on the life settlement market during the past two years are not likely to persist into the future. A lack of liquidity from institutional investors that feed capital into the life settlement market was the number one drag on valuations and offers. Quite simply the money used to buy policies was limited because investors had few credit facilities and limited capital available to deploy. This was not something inherently wrong with the life settlement market, rather it was an inevitable reality of the broader capital markets.

Wallach added “I think that the life settlement market will not have any future source of funds within two years.” This is clearly not the case. As financial institutions resume more normal liquidity levels and credit facilities again become available the demand in the life settlement market will consequently increase. The life settlement recovery is already underway in 2010 with more providers regaining funding and become active in the marketplace. At the end of the day, the hedge fund managers, private equity executives and investment bank traders must deploy their capital where they get the best returns. Many life settlement investors are now buying with 19% target IRR’s. Those kinds of returns are hard to ignore as an investment manager.

Another pillar of Wallach’s argument against the continued health of the life settlement industry is the proliferation of life settlement legislation. While life settlements are now regulated in 40 states and consequently the cost of doing business has increased for life settlement brokers and providers, the net effect isn’t all bad. In fact, a handful of states, and new NCOIL model act language now being considered, require life insurance carriers to notify policy owners that life settlements are an option when they are going to surrender or allow a policy to lapse. That can only be viewed as a positive signal for the longevity of the life settlement market.

The life settlement industry certainly has suffered along with the rest of the world over the past two years. But those difficulties should not be perceived as an indication of the long term strength of the secondary life insurance market. As a consumer friendly transaction, life settlements are enjoying continued protection by legislators and increased attention by investors seeking healthy returns. Those two things alone should ensure life settlements have a place for years to come.

Learn more about the life settlement market. Stop by Christian Evulich’s technorati article where you can find out all about what is happening in the life settlement world today.

Tags: , , , , , , ,
Posted in cheap life insurance | No Comments »

Are Life Settlements Worth It?

Wednesday, September 22nd, 2010

For some people life settlements have afforded them the opportunity to care for themselves and their families. People that turn their policies over to a buyer are given a specific amount which is related to how much the policy itself is valued at. That money is often used to cover the policyholder’s expenses before they become deceased. When the original policyholder passes on the monies are paid to the current holder.

Before settlements were available many would either allow their policies to lapse or return them to the insurance carriers for a tiny payout. No matter how it occurs, the holder either gets a small payment or nothing at all. Some cannot afford the payments and look to have them fall on someone else. They may also turn in their policies because there is no one to inherit upon death.

Selling off your settlement is not easy. There is money to be made, but there are also broker fees to be considered before the policy is sold.

There is a certain demographic considered for when these policies are sold. Ideally, the candidates are older versions, usually retired. Taking over an insurance policy for an older adult is quite different from taking over one from a much younger individual.

Selling a life insurance policy is not without its disadvantages. The seller may no longer able to acquire additional policies that could provide for their family should they die. If they die sonner that they figured, their family could be left penniless. It is a scary thought as people live longer and longer.

Both parties benefit from life settlements. People who no longer wants to pay for policies have the right to sell them off at a fraction higher than what the insurance companies would offer and are no longer responsible for the costs associated with carrying them. The investor is banking on reaping back what they have paid out and then some upon the passing of the original policyholder.

Looking to find the best deal on a life settlement, then visit http://lifesettlements.webs.com to find the best advice on hiring a life settlement broker.

Tags: , , , , , , , ,
Posted in cheap life insurance | No Comments »

Learning All About Life Settlements

Monday, September 20th, 2010

Life settlements are basically when an elderly person who has shortened life expectancy sells their life insurance policy. Usually, their insurance is purchased by an investor that has no other connection to the insured or policy owner.

Unlike other life insurances that need to be paid off until a certain age, some of these policies are already paid but cannot be collected since it is the death of the person that is the guarantee for a cash collection. This tool is used by many investors who seek out senior citizens who want to enjoy the savings they have invested in the policies.

A big benefit for the senior citizen who surrenders his policy through life settlements is that he will be able to enjoy the amount that he receives out of it. This means that he can pay off debts as well as enjoy a comfortable retirement until the end of his days.

An insurance policy itself is liquid between 20 to 60 percent of its actual market value, but some elderly folk would rather collect on larger amounts through life settlements. The best part for the investor is that if he finalizes a life settlement, he benefits from the whole amount due, which is an amount that is not affected at all by market trends.

This means, that the benefits to the investor, or third party, are high, especially since the settlement policy’s face value is extremely high and can give a better return on investments for the investor. Considering the fact that the third party only pays the policy holder the surrender value of the policy, once that person passes, the investor benefits from the whole amount the policy is worth.

One downside to life settlements is that policy holders are usually prone to being victims to fraudulent schemes. Many of them will surrender and settle for amounts that are way below the actual value of their policies, especially since they have no clue as to the liquidity of their policy and other factors that could play to their own advantage.

Settlements for these insurances are a good way for many senior citizens to collect from their life insurances early, before they die, to enjoy their retirement with. However, it must be remembered that any elderly person considering life settlements should always do their research and contact legitimate companies to complete the transaction.

Want to find out more about life settlements, then visit Kelly Ramirez’s site on how to choose the best life settlement broker for your needs.

Tags: , , , , , , , ,
Posted in cheap life insurance | No Comments »

Life Settlements Benefit You When Your Policy Is No Longer Wanted

Saturday, August 21st, 2010

Life settlements refer to the sale of a life insurance policy when it is no longer wanted. The people that frequently take advantage of this transaction are elderly. It is generally done when a buyer is willing to offer more than the cash value offered by the insurance company.

There are a variety of reasons why a person might take advantage of this. In some cases, the policy is no longer needed. In other cases, the state of the person’s health has declined so that the policy is worth more as a life settlement than if it were surrendered. In other cases, the policy might not be performing well or the person may not be able to pay for it any longer.

The amount of cash that a person will get from the settlement will typically be more than the surrender value but less than their beneficiary would receive at death. The company making the settlement will take over the premium payments and the company will then benefit when the insured is deceased.

The reason for choosing a life settlement is frequently because cash is necessary at this moment in time. In some cases, it is because the situation has changed such as the occurrence of death or divorce. If the beneficiary was originally a spouse who has now passed on or been divorced, cash in hand today might be preferable.

Life settlement brokers are usually responsible for negotiating the contract and receive a fee from buyers. Several considerations will affect how much the policy owner is offered for their life insurance. Because of this, it is smart to talk over your options with more than a single life settlement company so that you can be sure of getting the best offer.

Life settlements can be a great way for a lot of people to get the cash from an unwanted insurance policy. You can also compare this to other options like borrowing against your policy. Keep in mind that your proceeds may be taxable. Therefore, it is smart to talk to both a tax adviser and a lawyer before you make your final decision.

Looking to find the best deal on life settlements, then visit life-settlements-opinion.blogspot.com to find the best advice on using a life settlement broker.

Tags: , , , , , ,
Posted in cheap life insurance | No Comments »

What Is A Life Settlement Broker

Tuesday, August 17th, 2010

As the population of seniors continues to increase over the next several years, life settlements will become a more and more common financial service. It is a major financial transaction, however, and should not be taken lightly. For those considering it, a key step is finding a trustworthy life settlement broker.

Life settlements are relatively new financial tools, and many people do not know much about them. Basically, they entail selling life insurance policies to life settlement providers. Typically a policy will be sold for an amount greater than the surrender value of the policy, but less than the actual face value. These sales can be of great advantage to seniors who no longer need a policy, can’t afford their premiums or face an immediate financial need.

Brokers in these transactions collect competitive bids for the settlement from providers, who are typically financial institutions or investment companies. An experienced broker will know which providers are likely to be interested in their client’s specific policy. He or she will also know how to present the policy in the most attractive way to potential providers. It is unlikely that an individual policy owner or financial advisor would be able to solicit as attractive an offer as an experienced broker.

Life settlement brokers earn commissions for their services. How the commissions are calculated varies significantly from provider to provider. Some brokers calculate their commissions based on the benefit value of the policy. While the commission percentage in such cases is typically lower, the base amount is typically higher. Also, since the commission would be the same no matter what the settlement is, there is not much incentive to find the offer most beneficial to the policy holder. Others calculate the commission based on the value of the settlement. This creates some incentive to find the best settlement, but does not take into consideration the cash value of the policy, so it is better suited for people with no or very little equity in their policy. Finally, some base the commission on the amount of the settlement minus the cash value. This may mean the commission percentage is fairly high, but the base for that percentage would be relatively small.

In many states, laws and regulations governing the licensing of brokers have been enacted or are being developed. Meanwhile, the National Association of Insurance Commissioners has developed standards for brokers in these transactions. Those standards are not legally binding, but any responsible, trustworthy broker would explicitly and voluntarily adhere to them.

Life settlements are potentially useful for many seniors. But, as is the case with any major financial transaction, they are potentially risky as well. To reduce the risks, and ensure the best possible outcome, anyone considering this strategy should consult a reputable, trustworthy life settlement broker.

Looking to find the best deal on life settlements, then visit lifesettlementsource.blogspot.com to find the best advice on life settlement brokers.

Tags: , , , , , ,
Posted in cheap life insurance | No Comments »

Life Settlements for Seniors Unwanted Policies

Sunday, October 4th, 2009
by Mark Bradshaw

Does unwanted life insurance have a value to seniors? Well, sometimes it does, and this has become a new way for older people to raise cash.

The investors who buy the life insurance will be set as the new beneficiary. They also offer to make premium payments that are still owed. In return, they hope to collect on the death benefit. The insured person, on the other hand, gets paid now.

This can be an attractive option for many senior citizens who need money to live on, and are not as concerned about heirs who would get a death benefit later.

In the past, a person only had a couple of choices when they did not want to keep a policy. They could simply stop making premium payments and let the contract lapse as unpaid. Or they could surrender it to the original insurer, and settle for the cash value. This cash value was usuallly a small percentage of the contract’s death benefit though.

A better option, for people who qualify, is to find a life settlement.

Who gets to consider life settlements?

The person who is actually insured must usually be at least seventy, but some investors may consider an applicant as young as fifty-five.

What Kinds of Policies Will Qualify?

In addition, the policy must be permanent. Whole or universal life insurance would qualify. A term policy may be accepted if it has guranteed option to convert it to a permanent policy.

People with term life shold make a deal when there is still quite a bit of time left on their policy.

Is this a good idea?

This is not the best choice for all people, or for all families. But many people have been happy to take advantage of this way to raise cash.

This decision will keep the present heirs from collecting the death benefit. It is cash now in exchange for giving up the death benefit later.

Some companies explore this option because they want to get rid of life insurance they purchased on employees who quit or retired. They do not need to insure a key man or business owner who has moved on, and this is a way for them to get paid for the asset.

How much money can an insured person get?

There is a competitive market, and a qualified person may have to do some shopping for the best deal. But I have seen many people get paid a large percentage of the final death benefit in exchange for the policy. Of course, the investor wants to proft by collecting the benefits when the insured person dies. But since the market is competitive, they will certainly be willing to make a good offer.

How can a person find out more?

If you are interested, you can find brokers who will be able to help you find competitive cash offers.

I cannot tell you if you should sell your life insurance policy, but it is certainly something qualified people should think about.

About the Author:
Visit here to find Life Settlements for Seniors.

Tags: , , , , , , ,
Posted in whole life insurance | No Comments »