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The Life Settlement Advisor
April 2011 |
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| This Month's Message |
 As of this writing, almost 90% of the U.S. population now live in a state that regulates life settlements with the remaining states planning to enact their own legislation. We feel that such laws will gain traction in the coming years and that disclosure of settlement options to policy owners will be broadly required. As more states pass regulations that require full disclosure, more insurers will relax the rules for agents, allowing them to offer all the options. When this happens, it will be increasingly important for agents to become familiar with all settlement options and be ready to discuss them with their clients. As such, agents and other advisors with an affluent senior clientele will want to identify the basic requirements for life settlement cases: - Policy owner age 65 - 95 (75+ ideal)
- Life expectancy of 180 months or less (120 ideal)
- Policy death benefit of $50,000 - $50,000,000 ($1m - $5m ideal)
- Policy is past contestability period (usually 2 years)
Another easy way to determine if someone qualifies for a life settlement is to utilize Life Settlement Advisors' Qualification Calculator. As these new laws take effect, we all want to be prepared to assist our clients in the best possible manner and present them with all available options. 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
April 11, 2011 |
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| Quick Links |
Get answers to the most Asked Questions
Click here to determine if you 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 | |
Stoli on the Rocks?
California Broker, April 10, 2011
The life insurance marketing scheme known as STOLI (Stranger Originated Life Insurance) appears to have taken its last breath. STOLI was usually sold under some sort of non-recourse or partial recourse financing arrangement in which elderly insureds were persuaded to obtain life insurance policies for investors, circumventing or violating insurable interest laws. Read more...
Life Settlement Index Recap - March, 2011
AMRITA Life Settlement Index, April 5, 2011
The March 2011, Amrita Life Settlement Index results were reported on Tuesday April 5th at 10:00 AM EST. The results showed a strong rebound from the previous month with a 11.5% increase. The 87.8 point climb to 851.6 was based on responses indicative of growing life settlement demand across all survey categories. More...
New York State Insurance Department Acts to Protect Consumers' Ability to Access Secondary Market for Life Insurance
Life Insurance Settlement Association, March 15, 2011
ORLANDO, FL--(Marketwire - March 15, 2011) - The Life Insurance Settlement Association (LISA) applauds a legal opinion issued by the New York Department of Insurance Office of General Counsel against John Hancock Life Insurance Company on February 25, 2011. The opinion requires the insurer to convert term insurance policies that will be sold in the secondary market. The letter states that John Hancock, "may not deny [the consumer's] request to convert her convertible term policy on the basis that she intends to settle the converted policy." Continue... |
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 April 27, 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 estate planning attorney in Cleveland, Ohio asks, "What is the recent NCOIL model legislation regarding life settlements?"
Answer: The Life Insurance Consumer Disclosure Act was adopted during the NCOIL Annual Meeting in Austin, Texas last 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. |
Case Study: Term Life Policy
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Client: Male, 76 years old
Policy: $1,250,000 Term Life Policy
Situation: After his wife passed away, a 76-year old term-life policy owner realized he was paying premiums for a policy that he no longer needed.
Solution: Through a life settlement expert, the policy was marketed to a variety of global institutions and the client received a final offer of $178,500. with which he used to purchase long-term care.
Click here for more case studies.
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