The Life Settlement Advisor
May 2011

Throughout their business life, companies purchase business life insurance policies for risk management, employee benefit and investment purposes. When a company goes up for sale or goes out of business, many of these policies may become obsolete or unnecessary.

Any type of business policy may qualify for a life settlement, such as: universal life; variable life; variable universal life; whole life; survivorship, and; term (if convertible). Many business owners are surprised that a business term policy with no cash may actually have life settlement value.

The following business life policies can be sold for significant immediate cash:

• Key person policies
• Split dollar policies
• Policies used to secure business loans
• Policies used to fund a qualified pension or non-qualified retirement plan
• Policies used to fund employee benefit plans
• Policies used to fund stock redemption or cross-purchase buy/sell agreements
• Estate liquidity policies
• Estate equalization policies

The number of individuals in the U.S. age 65 and older will increase from 12.7 million in 2010 to 19.1 million in 2030.

 - U.S. Social Security Administration

Life Settlement Bidding 'Aggressive' - Set for One of 'Strongest' Years

Insurance and Financial Advisor, April 27, 2011

The life settlement industry is positioned for "one of its strongest years in recent memory," according to a financing company chief executive. Chris Ledlie, CEO of Opulen Capital, based in Manhattan Beach, Calif., said the last couple of years of battling a struggling economy and lack of capital have given way, leading him to see that "optimism remains high" for life settlements, according to a statement. More...

Life Expectancy Providers Announces the Release of the First Ever LE Provider Best Practices

BusinessWire, May 4, 2011

WASHINGTON--In October of 2010 LEPr announced the formation of a focus group that would be creating best practices standards to the life settlement and longevity markets. In December 2010 and January 2011 full day meetings with Investors and Providers were held in New York City to review the LEPr draft document of Best Practices. These meetings were focused on discussing, in detail the draft document while providing the participants the opportunity to provide their input. Additionally, all major life settlement organizations (Life Insurance Settlement Association (LISA), Institutional Life Markets Association (ILMA), European Life Insurance Settlement Association (ELSA) and (BVZL) Bundesverband Vermögensanlagen im Zweitmarkt Lebensversicherungen) were provided the draft and encouraged to opine. Continue... 

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.

A 77-year old male wanted to reduce the size of his estate by gifting a $1.5 million universal life insurance policy to his favorite charity. The charity would take on the annual premium payments of $49,000 and receive the $1.5 million death benefit upon the death of the insured. The current cash surrender value of the policy was $146,432.

The policyholder's trusted advisor contacted a Life Settlement expert about whether a life settlement would be appropriate. Upon review of the insured's medical records and life policy, an offer of $268,000 was made and accepted by the policyholder.

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 $268,000.

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