We applaud the National Conference of Insurance Legislators' (NCOIL) recent adoption of model legislation that requires life insurers to notify policy owners of the option to sell their policy instead of allowing it to lapse without value.

The NCOIL model legislation will help raise the awareness among life insurance consumers of the life settlement alternative. The enaction of this model act elevates consumer rights and private property rights above the special interests of insurance companies. 

The Life Insurance Consumer Disclosure Act was adopted during the NCOIL Annual Meeting in Austin, Texas in late November. The model act provides that insurance companies must notify insureds who are 60 years old and older or individuals suffering from a terminal or chronic illness of their options. The act covers eight possible options, including life settlements, accelerated death benefits, and conversion to long-term care policies.

More than half of seniors that terminated their life insurance policies in 2009, did not know they could sell them.

- Insurance Studies Institute, August 2010

NCOIL Model Requires Notice of Settlement Option
Insurance NewsNet, October 22, 2010
Nov. 22, 2010 -- The National Conference of Insurance Legislators (NCOIL) has adopted a controversial model act requiring life insurers to notify policy owners about the life settlement alternative when considering lapsing or surrendering a policy. Continue.... 

Recent Federal Reserve Action Underscores Stability of Life Settlement Industry
The Street, November 16, 2010
The Federal Reserve recently announced that it would move ahead with its plan to buy an additional $600 billion of U.S. Treasurys, an act widely viewed as an effort to spark the nation's economy. With short term interest rates at nearly zero - and few other available tools at its disposal - the Fed decided to effectively "flood" money into our economy. Whether the move will achieve its intended objective remains to be seen. What is apparent is that the financial markets offer no clear paths. To combat this, many investors are adopting multi-faceted strategies to hedge against risk, volatility, or meager returns and are seeking alternative, non-correlated investments like life settlements. Read more...

Life Settlement Advisors has lined up a buyer that is interested in purchasing small-face life insurance policies in the range of $100K - $750K.

For more information, call Leo LaGrotte at 888-849-0887 or e-mail at llagrotte@lsa-llc.com.

Client: Male, 84 years old
Policy: $1,600,000 Universal Life Policy

Situation: After conducting a Policy Performance Review of a client's policy, it was discovered that his insurance benefit would run out at the age of 91, due to the poor performance of the policy.

Solution:By utilizing the life settlement marketplace, the client received an offer of $224,000 for his policy with which he used to fund a new, replacement life insurance policy. The new policy would have a lifetime guarantee, run to age 110 and cost $22,000 less annually than the premiums on his old policy.