Posted by The Policy Settlement Alliance on Fri, Aug 13, 2010 @ 04:36 PM
By Jeff C Kennedy
The role of the life settlement funder is a vital one. Without the funder or investor there would be no money available to purchase life settlements. The life settlement funder can be a large institution or a group of smaller investors who put their money together similar to a hedge fund. The funder works with the provider company who actually purchases the insurance policy with the funders’ money. The purchaser and the funder have pre- existing qualifications on what type of investment they want to make. They determine the risk of the investment, amount, and time in which they expect a return. These pre-determined criteria agreed upon between the life settlement funder and providers are referred to as parameters.
Recently more investors are looking to be life settlement funders. Funders are more confident in the growing industry due to regulation and there is a strong demand for the funding of life settlements.
Click the LIVEpdq link for more information and for a free life settlement evaluation.
Note: Blog posts reflect the opinion of the author, which may differ from the opinion of policysettlement.com.
Posted by Alice Hood on Tue, Jun 29, 2010 @ 12:58 PM
By David M Epstein
When should one look into a life settlement funder? I had a 74 year old retired executive meet with me several months ago to review his life insurance policy that was part of his retirement package. The policy was term life insurance and the premium was getting to be too expensive for the retired executive to keep. He was advised by his CPA if he felt he didn't need it and that it had no cash value to just cancel the policy.
He had read in several publications about life settlements and was unsure if his policy would qualify with a life settlement funder being a term life insurance policy. Fortunately for the retired executive his policy had a conversion option within the policy that allowed the policy to be converted prior to him turning age 75 to a Permanent Life Insurance policy without the executive having to take an exam or answer any health questions.
Which was important since his health wasn't as good since he retired.
So when we completed the life settlement sale of his $2 million dollar term life, we were 3 months prior to his 75th birthday which is when the conversion option would have expired. Because he had done a little reading and discovered life settlements might be an option this allowed him to reap a $400,000 payout or 20% face value from the life settlement funder on a policy that had no internal value and he was about to let lapse for non-payment.
To say this retiree was ecstatic, he felt like he hit the lottery. When you feel like you may not have anything worth anything, like an old painting or antique and suddenly someone tells you it's true value, it can feel like you really did when the lottery. He found that his life insurance policy had huge living benefits and doing a little reading and research made him and his wife a small fortune.
For more information on a life settlements or a life settlement funder please click the LIVEpdq.
Note: Blog posts reflect the opinion of the author, which may differ from the opinion of policysettlement.com.
Posted by Alice Hood on Mon, Jun 28, 2010 @ 07:49 PM
By Richard S Bernstein
A life settlement funder is an entity that purchases life insurance policies. They are large financial institutions that are looking for investments to balance their portfolio. This is a relative safe investment since as long as the policy remains active, they are guaranteed to received death proceeds at some point.
For the right to take over a policy, a life settlement funder is willing to pay a lump sum of money. This amount can be significantly greater when compared to the policy's cash surrender value. This gives the original policy owner an added benefit that previously was not available.
Once the life settlement funder is the owner of the policy, they must make the necessary premium payments to keep the policy active. The policy owner should always take this into consideration when deciding if they should keep the policy.
To learn more about life settlements, please click the LIVEpdq
that will take you through the process and help you determine a fair value for your policy.
Note: Blog posts reflect the opinion of the author, which may differ from the opinion of policysettlement.com.
Posted by Alice Hood on Mon, Jun 28, 2010 @ 07:47 PM
By Edward E Leisher
A
life settlement funder, or provider, is the purchaser of the life insurance policy the individual is intending to sell. It is usually a group of investors pooling large sums of money together to purchase life insurance policies, either in the senior life settlement or viatical market, under a group of buying parameters. The life settlement funder is responsible for taking over the premium payments of a sold policy and paying the seller a lump cash sum once the sale is complete in return for the policy’s benefits.
Your broker will be the go-between for you and the life settlement funder. Some broker duties include collecting all relevant data, shopping the policy to multiple outlets, negotiating the best offer, and ensuring the completion of all necessary paperwork and compliance materials. Researching and finding a competent, trustworthy broker with a good reputation is your best bet to completing your life settlement transaction as quickly and efficiently as possible.
For more information please visit LIVEpdq.
Note: Blog posts reflect the opinion of the author, which may differ from the opinion of policysettlement.com.
Posted by Alice Hood on Mon, Jun 28, 2010 @ 07:25 PM
By Stephen P Turtur
A life settlement funder buys life insurance policies. Life insurance policies due to the structures that are in place today have a net present value that is not tied to the cash value. Funders or investment funds, buy these policies only after a considerable effort has been made to calculate their value. A life settlement funder will require an independent life expectancy report that is utilized as one of the major components of assessing value. The actual policy costs as well as the insureds medical criteria/history help the funder in this calculation. I have been involved in several cases where funders are actually in a bidding war type of environment for the purchase of policies. This is due to the prepaid expense that they experience as related to the reports mentioned above. A life settlement funder has in many cases a "set" of investment criteria that they utilize which determines what type of policies they will buy. It is important that you hire an agent/advisor to handle this type of transaction as he or she should know the correct funders to apply to for purchase or offers. I had a case where two funders actually requested to see the offers from the opposing company, prior to increasing their offer. I mention this as the amounts, though they may not differ much, include reasoning to win the purchase so as not to waste the expense already put forth on the case. This is an exciting field and selling a life insurance policy can have a nice return to the insured/owner.
To get started click on livepdq
Note: Blog posts reflect the opinion of the author, which may differ from the opinion of policysettlement.com.
Posted by Alice Hood on Mon, Jun 28, 2010 @ 07:24 PM
By Ken R Leisher
A life settlement funder can be almost any party who has the financial ability to purchase and maintain your policy. In the startup phase of life settlements, these funders were a combination of financial sources that included private and institutional money from around the world. Today, a life settlement funder is regulated, licensed and bonded and are much more sophisticated in understanding the risk and responsibility of the life settlement.
A life settlement funder has responsibilities that include a full assessment of the risk including life expectancies and policy performance projections. Professionals from the medical/ underwriting fields as well as product experts and actuaries guide the process of choosing the best policies to bid on and eventually purchase.
The obvious assumption is that "Profit" is the goal of the life settlement funder but it's more than simply "profit". The "risk reward" considerations include the financial institution behind the insurance contract. The financial status and ratings of the insurance company grade the paper that is being purchased. "A" rated paper will likely bring better purchase offers to the funder than "C" rated companies. Secured Profit! Knowing the "Who, How, and Why" is critical to finding the best funder.
For more information please click on LIVEpdq.
Note: Blog posts reflect the opinion of the author, which may differ from the opinion of policysettlement.com.
Posted by Alice Hood on Mon, Jun 28, 2010 @ 07:15 PM
By Stephen R. Bathon, CLU, ChFC, AEP
Several years ago a client came to me to see if he could become a life settlement funder. He had read about the high returns investors were making (15% at the time) and wanted to participate. I knew he had a large net worth but that he had no concept of the risks involved in being a life settlement funder.
He said that he would be interested in buying a dozen or so contracts if I could find the right people. Finding the right people is what a successful life settlement funder does for a living. The problem is that only a dozen or so people are not nearly enough to spread the risk. With only twelve contracts in your portfolio one individual living well beyond his life expectancy could turn a profit into a disaster.
Aside from having a large pool of funds the life settlement funder has to work with a life settlement broker who has already found a person interested in selling his policy. It is the broker’s job to collect all the medical records, run insurance illustrations and to obtain life expectancy reports. The life settlement funder then reviews these documents and makes a decision as to what he is willing to pay for the contract.
Buying a life contract is not an exact science and the life settlement funder has to be prepared for a few of his insureds living beyond their life expectancy report. If he does not have the funds to cover the mortality expenses and he has an insured living years beyond what he anticipated, it will have a negative impact on the funds rate of return.
I suggested to my client that he consider the consequences of being a life settlement funder with such a small sample. I asked him, “If just one person in your group lived to age 97, what do you think an insurance company would charge per million for just that one year? Then what about the next year? Funding settlements takes money and expertise and is not the place for an under funded armature.
For more information on settlement funders and life settlements, please click the LIVEpdq.
Note: Blog posts reflect the opinion of the author, which may differ from the opinion of policysettlement.com.
Posted by Alice Hood on Fri, Jun 25, 2010 @ 02:40 PM
By Amie M Wirth
Many industry insiders know that the parameters for any life settlement funder are continually changing. This is good and bad news for individuals that are trying to sell their life insurance policy.
The good news about the fluctuating life settlement funder parameters is that if you have a policy that you want to sell you will have a good chance if: you are at least 70 years old with moderate health issues and the life insurance policy is from a carrier with at least an “A” rating and the premium ration is a maximum of 5%.
The bad news about the fluctuating life settlement funder parameters is that you may have to wait for parameters to open up that fit your life insurance policy.
It is important that you find a life settlement broker that keeps abreast of the ever changing life settlement funder parameters and know who to shop your life insurance policy to. We work with our funders to know what the parameters are on any given day so that we can help all of our clients obtain the highest possible return on their life insurance policy.
Click our Livepdq
link now so that we can help you sell your life insurance policy now.
Note: Blog posts reflect the opinion of the author, which may differ from the opinion of policysettlement.com.