Life Settlements Have Returned

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If your clients have an old life insurance policy they no longer need or want and are in less-than-great health, contact LLIS about a possible life settlement before they surrender their policy. A life settlement is the sale of an insurance policy to institutional investors who manage the contracts for the benefit of the investors. Funders are very interested in buying these types of policies now: convertible Term, Individual Universal Life, or Survivorship Life (where one of the insureds has already died). Changes in the federal estate tax laws are the primary reason for your clients to consider selling an old policy because they may no longer have an estate tax obligation.

There has been a significant rebound in life settlements this year. New capital investors have come on board, resulting in increased value of policies in the secondary market. In the first six months of this year, settlements already surpassed the total death benefit amount purchased in 2013. In addition to traditional life settlements with Permanent insurance, other programs advisors can incorporate as solutions for their clients include:

SWAPP: A death benefit option that allows clients to retain a portion of the death benefit, but eliminates all future premium payments
Term: A program that allows for the purchase of convertible Term products
Simplified Settlements: A streamlined approach. All underwriting is based off a four-page questionnaire. Medical records are not collected. Turnaround time is 7-10 business days. Mandatory on policies under $500,000 and discretionary on policies between $500,000 and $1,000,000.

Never let your clients “cash in” an old policy without checking with us first to see if a life settlement is a possibility. Under the right circumstances, your clients could receive a much higher amount than if they simply surrender their policies. Contact LLIS and ask for Judith Maurer to learn more.

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IN THIS ISSUE

	From the CEO
	Why Should Your Clients Own Life Insurance?
	The Value of Life Insurance In Your Fee-Only Financial Firm
	Life Settlements Have Returned
	Did You Know...