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The Life Settlement Advisor
January 2011 |
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| This Month's Message |
 As we welcome a new year, it is with a renewed sense of optimism that we look forward to continued improvement in the life settlement marketplace. 2010 was a challenging year in many respects, but one that was markedly better than 2009. As the overall health of the economy continues to improve, we feel that this will in turn invigorate the capital and private equity markets and life settlement transactions will see a significant bounce-back from the past two years.
Some of the other things we can look forward to in 2011 are:
Continued regulation - currently about 85% of the states have some form of life settlement regulation enacted or are in the process of passing pro-consumer legislation.
Adoption of the NCOIL Model Act - we can expect states to start adopting this new policy requiring insurance ccompanies to notify consumers of the life settlement option when policies are to be surrendered or allowed to lapse. With the estate tax issue clarified, we expect many TOLI policies to become unnecessary and many policyholders will look to sell their policies rather than surrender them.
Continued interest in lie settlements as investments - as more private equity comes to the market in 2011, we feel many investors will be looking to life settlements as an alternative investment class - one that is safe, predictable, and uncorrelated to the general market and world events.
Here's to a happy and prosperous New Year to all.
I would be happy to answer any questions you may have about this or any other life settlement topic. I can be reached at 888-849-0887 or llagrotte@lsa-llc.com.
Leo LaGrotte
January 11, 2011 |
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| Quick Links |
Get answers to the most Asked Questions
Click here to determine if your or your client's life insurance policy qualifies for a Life Settlement |
| Factoid | |
Forecasts show that over 25% of baby boomers will be unprepared for retirement and likely be dependent on government programs."
- AARP, 2009
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| Latest News | |
Insurance Linked Securities: A Misunderstood Asset
International Business Times, January 4, 2011
The insurance-linked securities market has boomed in the last ten years.Still, not many people know what they are.Recently, these assets, or more precisely the secondary market for life-insurance policies, gained some attention as legal disputes involving them erupted.
In recent months, insurers are suing third-party investors in life-insurance policies, claiming these transactions are invalid. Continue....
Top 10 Life Settlement Predictions of 2011
Technorati, January 2, 2011
As 2010 draws to a close and the dawn of a new year beckons, those in the life settlement industry look forward with renewed optimism. By most accounts, the life settlement industry's bottom is behind it and the secondary life insurance market is now in the process of recovering. How much and how fast is still to be determined. However, below are the Top 10 Predictions for Life Settlements in 2011. More... A Financial Advisors Guide to Evaluating a Life Settlement Transaction for a Client
National Underwriter, December 13, 2010
Oftentimes, a client accumulates multiple life insurance policies as financial and estate planning needs change. But when a client's needs for maintaining a policy ceases, a life settlement-selling one's policy to third party investors for less than the contract's face value but more than the cash-surrender-may be appropriate.
Accordingly, financial advisors should understand the regulatory requirements applicable to representing a client for whom a life settlement may be suitable and the due diligence procedures that should be undertaken in that representation. Read more...
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Register for our Free Life Settlement Webinars
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Learn Why Life Settlements Can be an Important Option for You and Your Clients
DATE: Wednesday January 26, 2011
TIME: 2:00 - 2:45 PM (Eastern Standard Time)
PRESENTED BY: Leo LaGrotte
This in-depth webinar will focus on the basics of life settlements, including an overview of the market, qualifying criteria, growth drivers, regulation, transaction process, tax implications, and much more.
This introductory webinar is perfect for those who wish to learn more about this exciting new market and will provide an overview of Life Settlements and the great value this new financial planning tool can be for you and your clients.
Please click here to register. |
| Company Announcement | |
Life Settlement Advisors has lined up a buyer that is interested in purchasing small-face life insurance policies in the range of $100K - $1M.
For more information, call Leo LaGrotte at 888-849-0887 or e-mail at llagrotte@lsa-llc.com. |
Question of the Month
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An indepenent life insurance agent in Kansas City asks, "Are there any restrictions on selling Term Policies in the life settlement market?"
Answer: If the policy is transferable and beyond it's two-year contestability period, then there should be no problems in selling the policy on the secondary market. However, some policies may have specific guidelines that can have an effect on an agent's compensation. For example, last year some insurance companies added guidelines that state they will NOT pay commission on permanent policies being converted from a Term Policy that has been settled. |
Case Study: Term Life Policy
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A 74-year old female had a $750,000 Term Life Policy that was about to lapse.
Instead of just letting it lapse, the policyholder's trusted advisor contacted a Life Settlement expert to determine if a life settlement would be appropriate in this case. Upon review of the insured's medical records and policy, a financial institution offered $110,000 for the policy, which was paid in full to the policyholder, who then went on to purchase long-term care insurance with the proceeds. Click here for more case studies. |
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