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Latest News |
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21st Services Announces Age-Exact Life Expectancy Evaluations
Press Release, August 8, 2011
21st Services, a leading provider of life expectancy evaluations to the life settlements industry, has announced a change in the age calculation in its evaluations. Effective August 1, 2011, 21st Services is using exact ages rather than industry-standard "age- nearest birthday" or "age-last birthday" when it calculates life expectancies. Continue...
The Tax Treatments of Life Settlements Revisited
California Broker Magazine, July 12, 2011
In May of 2009, the IRS clarified its position on the tax treatment of life settlements by issuing Revenue Rulings 2009-13 and 2009-14. While Revenue Ruling 2009-14 deals only with the taxation of life settlement investors, Revenue Ruling 2009-13 deals with most everyone else who sells a policy. Both of these rulings contain some novel and questionable interpretations of tax law. More...
Profit from Unwanted Life Policies with Life Settlement
Investopedia, July 9, 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. Read more...
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| Company Announcement |
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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 Naples, Florida asks, "Should my client tell his children and other beneficiaries when selling his policy?"
Answer: Life insurance can be an integral part of a senior's estate and may be important to the heirs and therefore should be treated as any other element of a financial portfolio.We believe it is important to talk to as many people as possible when when making a serious financial decision - including beneficiaries and/or children. In fact, most purchasers will insist on beneficiaries being notified of the policy sale. |
| Case Study: Universal Life Policy |
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Client: Male, 82 years old
Policy: $1,400,000 Universal Life Policy
Situation: Due to declining retirement assets, an 82-year old man decided that it would be in his best interest to sell his unneeded Universal Life Policy on the secondary market.
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 $151,000 was accepted by the man and used to supplement his retirement.
Click here for more case studies. |
I am often surprised at how rapidly the life settlement industry has grown and matured over the last few years. Much of this has to do with the increased regulation and pro-consumer laws that have gone into effect and made this secondary market for life insurance a better and more secure offering for sellers and investors alike. It has also had the effect of retaining the stronger, legitimate life settlement companies and hastening the departure of those that are illegitimate and undisciplined.
