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The Life Settlement Advisor
February 2011 |
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| This Month's Message |
 There's been much talk recently from many different sources regarding the "so-called" demise of the life settlement industry. While it's true that the marketplace had suffered noticeably from the end of 2008 through most of 2010, I can confidently say that the worst of it is over and the industry is definitely rebounding. Much of what has led to the rebound has been a clear-cut focus on transparency and disclosure brought about by increased regulation, new industry best practices, and better, more-detailed underwriting. Another big reason we're seeing for the increase in policies is the decision by the government to retain the existing estate tax law - with many of these policies no longer needed. Along with an increased flow in policies over the last few months, we have also noticed that the policies themselves that are coming in are much better suited to life settlements than in the past. Much of this is due to the fact that there is much more education out there on the part of the advisor and knowing what constitutes a good life settlement case. As a reminder, the best policies for life settlements are those owned by seniors who no longer need or who no longer can afford them. Key-man policies, which are owned by businesses on the lives of executives who are no longer in their employ, also have been drivers of the market. We expect to see continued growth as the industry continues its maturation. On the whole, the future remains bright. 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
February 8, 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 | |
"39 percent of middle-class Americans own some form of permanent life insurance coverage."
First Command Financial Behaviors Index, 2010 |
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| Latest News | |
Should You Sell Your Life Insurance Policy?
US News and World Report, January 21, 2011
Selling a life insurance policy to generate current income has historically been a controversial practice. Investors who buy the policies do not make money until the selling policyholder dies, creating a death-watch dynamic that is morally repugnant to critics. The life settlements industry, as it's now called, accurately notes that such settlements have long been an acceptable estate planning tool. Now, with rising numbers of aging seniors, companies and brokers involved in life settlements are seeking acceptance of selling a life insurance policy as a mainstream retirement tool alongside annuities, long-term care, and other age-related financial products. More....
Survey Reveals Need for Guidance on Life Settlements
FTAdviser, January 13, 2011
Advisers in the UK are calling for more guidance and education from the FSA on the life settlements asset class, according to research from PDL International. The independent survey, carried out on PDL's behalf by NMG Consulting with 353 investment IFAs, revealed that more than one-third of financial advisers wanted clearer guidance from the City watchdog.
Continue...
LTC and Life Settlements - Back From the Brink
National Underwriter, January 10, 2011
Long term care (LTC) insurance and life settlements, once clinging to the ledges of the life andhealth insurance industry, now appear to be climbing back, experts say. Despite recent setbacks such as rate increases on in-force policies by major carriers and the departure of MetLife Inc. from new sales, executives in the LTC insurance business confidently predict encouraging develoments.
Read more... |
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 March 30, 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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A 73-year old retiree in Seattle, Washington asks, "How much money will I get if I sell my life insurance policy through a life settlement?"
Answer: The value of a life insurance policy is determined by a number of factors, including, but not limited to, the age and medical condition of the insured, type of insurance policy, rating of the issuing insurance company and amount of premium payments to keep the life insurance policy in force. |
| Case Study: Universal Life Policy Estate Planning | |
Client: Male, 82 years old
Policy: $1,800,000 Universal Life Policy
Situation: An 82-year old male wanted to reduce the size of his estate by gifting a $1.8 million Universal Life insurance policy to his favorite charity. The charity would take on the annual premium payments of $38,400 and receive the benefit upon maturity of the policy. The current cash surrender value of the policy was $139,800.
Solution: The policyholder's financial advisor contacted a Life Settlement expert about whether a life settlement would be appropriate. The policy was presented to a variety of institutional organizations and received a final offer of $234,600.
The charity received the cash immediately and was not burdened with having to pay the premiums. The insured was also able to write off the $234,600. Click here for more case studies. |
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