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The Life Settlement Advisor
July 2011 |
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| This Month's Message |
 According to a new study conducted by Allianz (read here for more) on the subject of investing for retirement, baby boomers were more attracted by a ratio of 4 to 1 to guarantees for their retirement versus potential high returns with market risk.
The same study also found that, despite the recovery from 2009 levels, boomers still are very worried about whether their retirement income will last and how prepared they are for the future.
We believe that the life settlement market addresses both issues, albeit from two different sides of the spectrum. For those who are looking for a safe investment, life settlements may be the answer. While many portfolios have suffered through times of economic instability, life settlement investments have provided low-risk, fixed income, non-correlated growth.
The flip side of the coin is for those baby boomers out there that no longer have need of their life insurance policy. According to the Government Accounting Office (GAO) 2010 study, seniors receive up to 8 times cash surrender value selling their life insurance into the secondary market and the funds can be used to supplement their retirement.
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
July 12, 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 | |
According to a recent AARP survey of Baby Boomers, 40% of them plan to work "until they drop". |
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Latest News | |
Rid Yourself of Unwanted Policies
The San Francisco Chronicle, July 10, 2011
The time may come when life insurance policy owners want to rid themselves of the policies they own. Some desire to do away with their policies on account of simply no longer wanting to pay the premium. Others find themselves in a position where they need to access cash due to a major - and often unexpected - expense. Still others just don't believe they have a need for the protection afforded by the life insurance companies. Whatever the reason, policy owners need be aware of all of the options they have at their disposal when deciding what action to take when shedding an unwanted policy. Continue...
What Next? ILITs & Estate Planning With the $5M Exclusion
AdvisorOne, June 27, 2011
Life insurance is a common tool for ensuring that estates have adequate liquidity to pay estate expenses and taxes. But recent changes to the estate tax have some people questioning whether the high premiums they're paying are worth it when their estates are no longer likely to be hit by the estate tax. With a $5 million exclusion amount and brand-new exclusion portability provisions, far fewer households have to deal with the federal estate tax. But is allowing unneeded life insurance to lapse the best solution?Life insurance is a common tool for ensuring that estates have adequate liquidity to pay estate expenses and taxes. But recent changes to the estate tax have some people questioning whether the high premiums they're paying are worth it when their estates are no longer likely to be hit by the estate tax. More...
10 Surprising Ways to Avoid Nursing Home Care
Caring.com, June 15, 2011
Although many nursing homes today offer wonderful care, most of us would prefer to live out our lives in the comfort of home. For any number of reasons, though -- from physical or mental health issues to dwindling finances -- staying at home doesn't always seem possible. If someone close to you appears to be headed for a nursing home, there are alternatives that can -- sometimes indefinitely -- forestall the need for such a move. With a $5 million exclusion amount and brand-new exclusion portability provisions, far fewer households have to deal with the federal estate tax. But is allowing unneeded life insurance to lapse the best solution? Read more...
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| 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 CPA in Indianapolis asks, "My client is liquidating his company. The company has a number of key man insurance policies that it owns. Are these eligible for life settlements?"
Answer: For companies owning key man insurance policies that are no longer needed, a life settlement may present a unique opportunity to receive maximum policy value for a potentially unrecognized asset. Instead of lapsing for no value or surrendering the policy for its available cash, it can be appraised to determine its potential fair market value and may then be sold in the secondary market subject to certain conditions. |
| Case Study: Convertible Term Policy | |
Client: Male, 81 years old
Policy: $1,100,000 Convertible Term Life Policy
Situation: A man realized that he no longer needed the term life insurance policy that he was still paying premiums on. Thinking that since it's a term policy, it would not be eligible to be sold on the secondary marekt as a life settlement. A friend of his, who happened to be an estate planning attorney informed him that he could indeed sell his term policy as long as it was convertible.
Solution: A life settlement expert was retained to market the policy to interested institutional investors around the world. After a few months, an offer of $123,000 was accepted.
Click here for more case studies. |
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