Posted by The Policy Settlement Alliance on Fri, Sep 03, 2010 @ 07:33 PM
By: Joe Horner
A life settlement advisor could be your friend, your lawyer, your insurance agent, your accountant or anyone that sounds as if they know more than you about selling your unwanted life insurance policy. When choosing to work with a life settlement advisor to sell your policy it is important to ensure they not just sound as if they know but have a good idea of how to present your policy to potential investors, have a reasonable idea of what it is worth so a ‘low ball’ bid is not taken erroneously and is licensed appropriately to comply with state regulations.
You will want to sit down with the life settlement advisor you choose and go over what all will happen in the process so you’ll have an understanding how long it will take, what will be required of you and what your goals are when selling the policy. One of the important items you’ll want to get some advice on from your advisor on whether there will be the tax implications when you sell your policy. If your advisor is not familiar with these implications you will also want to incorporate an accountant to ensure this element is factored into whatever price is accepted for your policy.
A good life settlement advisor should be able to speak intelligently about all of these areas so if you are not getting reasonably good answers and insights into these areas you may want to seek out another group or individual to assist you in selling your policy. The process is really not all that complicated but one is not familiar with the process one can easily get lost in the shuffle or get involved with someone or a group that could mishandle your life settlement and potentially taint your ability to sell your policy.
For more information on a life settlement advisor please visit LIVEpdq.
Note: Blog posts reflect the opinion of the author, which may differ from the opinion of policysettlement.com.
Posted by The Policy Settlement Alliance on Fri, Sep 03, 2010 @ 08:10 AM
By: Joe Horner
When a life insurance policy is submitted to an investor for potential purchase it will go through a life settlement appraisal to determine its worth to the owner. There are various elements of data that go into the life settlement appraisal and can oftentimes take several weeks to gather and are the major reasons why the process of selling a life insurance policy takes several weeks.
A financial, medical and suitability analysis is performed to process a life settlement appraisal. The financial analysis is done by looking into how much will premiums be over the expected duration of the policy or rather what is the least amount of premium required to keep the policy in force until the insured dies. The medical evaluation is done by gathering historical medical records kept by the insured’s primary care physician and other doctors seen and then submitting to an underwriter which determines the amount of time the insured is expected to live from a specific point in time. Suitability analysis is a process which the investor will go through to ensure the policy they are looking to buy matches up well with the kind of investment they are looking to make. The investor may be looking to purchase small face amount policies with short life expectancy so policies that do not have these attributes will most likely not be bid upon as it would not meet the investor’s criteria.
Because of the life settlement appraisal process and the time it takes to gather the data elements needed to complete the life settlement appraisal, offers are not made as quickly as some people might want. Investing into only one policy can sometimes involve several hundred thousand to several million dollars but the same process is done regardless of the policy submitted.
For more information on life settlements please visit LIVEpdq.
Note: Blog posts reflect the opinion of the author, which may differ from the opinion of policysettlement.com.
Posted by The Policy Settlement Alliance on Wed, Sep 01, 2010 @ 09:08 PM
By: Joe Horner
Bonds can be written for many different reasons and can be backed by many different things but recently there is a lot of interest in life settlement backed bonds. The reason for the interest in life settlement backed bonds is the asset, life insurance policies, can be valued for their future worth in some instances. Since life insurance benefits do not typically go down and premiums paid to date represent the investment capital of the asset there is often some very attractive leverage that can be utilized here.
However, one of the issues with life settlement backed bonds is oftentimes the valuation of the life insurance policies. Some entities may choose to allow the backing to represent 100% of the death benefit value of the life insurance policies while others may choose to go through some form of life settlement appraisal method to determine a net present value for the policies and use that figure for the asset backing the life settlement backed bonds. This valuation can vary depending on how the valuation is done but additionally the value of the policies will increase as time goes by and additional premiums are paid into the policies.
Whereas some assets used to back bonds are bought and paid for the policies in life settlement backed bonds must continue to receive premium payments to keep the policy in force until the maturity of the bond or longer. Ideally a knowledgeable entity familiar with managing policies will want to pay the least amount possible into the policy that will keep it in force but ensure the policy does not lapse by paying too little or even miss paying a premium altogether.
Settlement backed bonds can be very attractive to investors but should be looked at carefully. For more information about life settlements please visit LIVEpdq.
Note: Blog posts reflect the opinion of the author, which may differ from the opinion of policysettlement.com.
Posted by The Policy Settlement Alliance on Tue, Aug 31, 2010 @ 04:16 PM
By: Joe Horner
People interested in selling a life insurance policy for cash or something else of value will want to involve life settlement advisers to assist them in obtaining the best offers possible for their policy. Settlement advisers work to ensure a policy is presented in its best light to as many potential bidders as possible. When investors compete to purchase a policy it can only lead to higher offers and subsequent additional money for the policy owner.
Life settlement advisers are there to represent the policy owner’s best interests and therefore will be working to ensure all procedures are followed appropriately and timely to meet the seller’s goals for the sale of the policy. Settlement advisers are also known as life settlement brokers which is the more commonly used term when referring to the people that work with policy owners and represent their interests to the investors looking to acquire life insurance policies as investments.
When looking to choose life settlement advisers it will be important to work with someone you feel comfortable working with and keeps you informed with each stage of the process. As the process does not happen in minutes as many financial transactions do it is important to not get the feeling your policy has been forgotten about and no one is working on it. There are several elements of information that must be acquired before an investor can analyze a policy and gathering these elements can sometimes take several weeks so a policy owner will need to be informed about the progress of these elements being gathered so that the investors can even take their first look at the policy.
For more information about life settlements and to speak with an experience advisor please visit LIVEpdq.
Note: Blog posts reflect the opinion of the author, which may differ from the opinion of policysettlement.com.
Posted by The Policy Settlement Alliance on Mon, Aug 30, 2010 @ 01:36 PM
by: Joseph W. Horner
There are some life settlement basics that insureds/policyholders should know as they think about potentially selling their life insurance policy in the secondary market (life settlement market) in order to have an idea as to whether or not their policy is marketable and will hopefully generate offers. Some of these life settlement basics include:
1)What type of policy you have. (UL, Term, WL or VUL). UL and convertible term are the types of policies funders are most interested in
2)Most funders want policies on insureds ages 68-70 and up, although some funders say they will look at policies on insureds age65 and up.
3)How the policy is owned. The policy owner will have to sign the documents to sell the policy so the funder needs and wants to know if the policy is owned by the insured, beneficiary, or a business entity or partner. Also if there are assignments or liens on the policy as all of these things can affect if a funder might be able or willing to make an offer
4)The state of ownership of the policy. Even though the insured might live in state A the policy could be owned by someone else (child, grandchild, trust, etc) and they live in state B. In which case the policy is considered a state B policy. Since not all funders are licensed in all states it is important to know the state the policy is based in so the funder can quickly know if they can even look at a policy
5)The premium to death benefit ratio on the policy. Most funders want the ongoing yearly premium to be no more then 4-5% of the face amount. The lower the percentage the better.
6)The cash surrender value of the policy. Funders typically don’t like policies with high cash surrender value which is one reason why funders don’t like whole life policies.
7)The insured’s life expectancy (LE). This can only be determined by having the insureds medical records reviewed by a life expectancy provider and having a life expectancy report generated. Funders typically want LE’s between 24-180 months, again the lower the better.
Although it’s not required, by working with a life settlement broker the insured/policyowner can discuss these life settlement basics with them, and a good broker can determine if a policy might be able to generate an offer before going through the process of ordering medical records and obtaining LE’s. Thus saving everyone time and effort as well as helping to manage expectations.
To learn more about life settlement basics and if your policy is marketable click on the LIVEpdq link now.
Note: Blog posts reflect the opinion of the author, which may differ from the opinion of policysettlement.com.
Posted by The Policy Settlement Alliance on Fri, Aug 27, 2010 @ 04:26 PM
By: Joe Horner
A person that is interested in handling the sale of another person’s life insurance policy to an investor will oftentimes require a life settlement broker license. Many states have implemented regulation that require people to register themselves with the respective state insurance department to acquire a license which will be asked for when submitting an insurance policy to an investor. Keep in mind that it is only the seller’s representative that must hold a life settlement broker license and not the actual owner who could sell their policy on their own if they so desired.
There are some states that only require the representative be a licensed insurance agent but most will require the seller representative to hold a life settlement broker license. Each state department of insurance will have information about whether or not a license is required for one to handle these transactions in the respective state. These licenses will need to be renewed periodically which will also require fees.
As a life settlement broker license is required by many states each life settlement provider will request a copy of such license if they have not done business with that broker in the past. Additionally, a provider will oftentimes keep up with renewal dates of these licenses from the brokers they deal with frequently and know if one has expired. Just as one can acquire an out of state life insurance agent license an out of state license can be acquired as well but must be maintained just like an instate license.
For more information on a life settlement please visit LIVEpdq.
Note: Blog posts reflect the opinion of the author, which may differ from the opinion of policysettlement.com.
Posted by The Policy Settlement Alliance on Thu, Aug 26, 2010 @ 01:41 PM
By: Joe Horner
If you have considered selling an insurance policy you will sooner or later be dealing with a life settlement attorney or at least some of the documentation they have created to complete the sale of your policy. There are many regulations that must be followed in life settlement transactions which require a life settlement attorney to monitor and ensure they are stringently adhered to.
Each state insurance department creates regulations to protect their residents. A settlement attorney must monitor these regulations to ensure the company the attorney works for remains compliant so that the company can continue to purchase policies for their investors. If a company is found to have conducted a life settlement transaction out of compliance with the state regulations set there can be fines assessed or even license revocation.
An individual looking to sell a life insurance policy does really not need to hire an attorney with a specific background as a life settlement attorney as these regulations are there to protect individuals first and foremost. If however you do consult an attorney during the process, he or she will most likely need to be well verses in contract law as the agreements used in completing a life settlement transaction can be quite lengthy.
Just as the initial purchase of a life insurance policy is a legal contract between the initial owner of an insurance policy, the secondary market purchase of an existing life insurance policy will require a legal contact as well. A settlement attorney drafts these contracts which should adhere to appropriate state life settlement regulation set by the respective state’s insurance department.
For more information on a life settlement please visit LIVEpdq.
Note: Blog posts reflect the opinion of the author, which may differ from the opinion of policysettlement.com.
Posted by The Policy Settlement Alliance on Wed, Aug 25, 2010 @ 03:39 PM
By: Joseph W. Horner
The life settlement market is complicated and the more life settlement awareness a policyholder has the better their experience in the marketplace will be.
A policyholder can gain life settlement awareness from a variety of places, such as friends or relatives of have dealt in the market already, from settlement agents and brokers, and even from settlement providers. All of these people can provide you good information BUT they can also provide you with biased information based on their own experiences and company/organization points of view.
I believe the best place to gain life settlement awareness is through the internet. Their you can quickly and easily find a vast amount of information on everything from the basics of a life settlement, to detailed descriptions of the whole process, tax aspects of the transaction, as well as extensive glossaries. You can also research settlement agents, brokers and providers.
Using the internet allows you to find information from a variety of sources thus enabling you to ask more informed question when dealing with a settlement agent, broker or provider which in turn allows you to make better decisions as to whether you want to work with those particular individuals.
Life settlement awareness is all about the quality of the information that you have. The better the quality the more informed you are. We know that the internet can give you a vast quantity of information but it can also give you quality information as well. You just have to do the research.
To learn more about how a life settlement can help you click on the LIVEpdq link now.
Note: Blog posts reflect the opinion of the author, which may differ from the opinion of policysettlement.com.
Posted by The Policy Settlement Alliance on Wed, Aug 25, 2010 @ 07:39 AM
By: Joseph W. Horner
A life settlement buyer can be a large institution (large bank, brokerage house, pension fund etc…) looking to invest tens or even hundreds of dollars or an individual investor looking to invest $25-$50,000 (minimums vary by fund).
Whether the life settlement buyer is a large institution or an individual what they are looking for is to invest in an asset class that is not tied to the capital markets the same way typically investments are. This means they will not be as affected by price of oil, what is happening with interest rates, or if there is an economic crisis in Europe. That is why life settlements are sometimes called uncorrelated assets.
A life settlement buyer is ideally looking for a return on their investment in a 5-15 year time horizon. The more policies they are invested in (either fully or partially) the greater chance they have of making a return on their investment in a shorter time period.
If you are interested to learn more about what’s involved in a life settlement click on the LIVEpdq link now.
Note: Blog posts reflect the opinion of the author, which may differ from the opinion of policysettlement.com.
Posted by The Policy Settlement Alliance on Mon, Aug 23, 2010 @ 05:20 PM
By: Joseph W. Horner
With the growth in the life settlement market life settlement careers are a growing field. There are life settlement agents, life settlement brokers and life settlement providers. Depending on the life settlement careers path you choose will determine the role you play in the settlement process and what duties your role will require.
A life settlement agent is a person that sells the value of life settlements to clients and prospects, usually through face to face meetings, seminars or group presentations. The life settlement agent acts as the middleman between the insured and the life settlement broker or provider. They will work with the insured to gather the required information for the prescreening process and forward it to the broker or provider. They should also coordinate getting the closing documentation completed properly and back to the brokers/providers should the case get that far and keep the insured informed as the case moves through processing.
A life settlement broker is the intermediary between the providers and the life settlement agents or the insured’s depending on how the policy is brought to them. The settlement broker typically prescreens the case then sends it to the providers whom they believe the case is the best fit for. They also help the settlement agent or insured get the closing documentation completed properly and back to the provider. A settlement broker could be one individual or several people that prescreen the policies and coordinate the processing of the paperwork as the policies move through the processing stages of the settlement transaction.
A life settlement provider is the intermediary between the investors and the agent/broker/insured depending on how the policy is brought to them. They will screen the case and if it passes then run it through their pricing model. If the case prices they will then inform the agent/broker/insured (depending on who is involved) of the offer. If accepted they will generate the acceptance letter and once it is signed then generate the closing documents. When the completed closing package is returned they will review the documents and if all is in order submit the required paperwork to the insurance company for acknowledgment. Once they receive acknowledgment from the insurance company they will release the payment to the insured. A settlement provider will typically have a number of people working for them, in order to screen the policies, run them through the pricing models, then generate and process the required paperwork for the policies being purchased.
As you can see your position in life settlement careers can vary depending on what role you are in. To learn more about the different life settlement careers click on the LIVEpdq link now.
Note: Blog posts reflect the opinion of the author, which may differ from the opinion of policysettlement.com.