Posted by The Policy Settlement Alliance on Tue, Aug 10, 2010 @ 03:51 PM
By Michael H. Wilner
Life settlement funders are third party investors who may purchase an existing life insurance policy for higher cash payments than the policy owner might otherwise receive. This is also known as a life settlement transaction which can provide for liquidity to pay for living benefits.
Changes in people’s lives can reduce or eliminate the need to keep an existing life insurance policy. Many times the insured has outlived the beneficiary or can no longer afford to continue the premium payments. Life settlement funders offer an alternative to cashing in a life policy for the surrender value or allowing a policy to lapse wasting all the years of premium payments.
Life settlement funders will only make an offer to policy owners who meet certain criteria. In order to make an offer a review of the existing life insurance policy as well as the insured’s life expectancy must be completed. The funders have become common with financial advisors for clients who are over age 65.
If you would like to see more information regarding life settlements please click on the link LIVEpdq for a free analysis of your current life insurance plan.
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 @ 08:53 PM
By
Stephen P Turtur
Life settlement funders
are in business to acquire ownership and benefit rights pertaining to life insurance policies that are for sale. In order to transact this type of business there are several agreements that they must be provided with from the insured/owner of the policy. Full medical disclosure of the insured as well as a complete internal accounting of the policy starts the process. Life settlement funders have certain criteria that they have relating to what type of policies they are going to purchase and this usually will be dependent upon factors of life expectancy duration of the insured as well as the policy's cost. To pinpoint the age for approval is not at issue as much as the life expectancy report. A funder may have guidelines as to the "cut off" point of life expectancy as a part of the investment agreements. Life settlement funders as with other types of business/investment firms have an investment model and obviously all the funders do not go after the same types of policies. I suggest hiring an experienced agent/advisor that does this on a daily basis to help you pinpoint the funders that may be interested in your policy. I have been surprised to see that in several cases a particular funder may bid a much higher amount verses their competing bids and this maybe due to their target agenda.
To find out more please click on
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Posted by Alice Hood on Mon, Jun 28, 2010 @ 08:52 PM
By Joseph W. Horner
Life settlement funders
can be anything from pension funds, hedge funds, family office money, etc. There are various entities involved in a life settlement transaction but in the end it is the person supplying the investment capital that will own a life insurance policy once purchased in the life settlement process. Any amount of money can be deployed to purchase one policy or many.
Once the amount of money to be invested is determined, a portion of it is then provided to what is known as a provider who will have the appropriate licensing required to purchase the policies. After the purchases are made additional monies are needed to keep the policies in force. A process called policy management must then take place and can be performed by any number of entities. Policy management is the task of keeping policies in force until the death benefit is paid and determining the least amount of premium dollars that have to be spent in doing so. The funds for this process are also provided by life settlement funders.
Life settlement funders view the purchase of policies as a lucrative and uncorrelated asset which they can diversify themselves from other investments. Most investors intend to hold onto the policies until the death benefit is paid out but they will sometimes sell policies if needed or sometimes sell opportunistically to someone with a greater need.
For more information on life settlement funders 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 @ 08:52 PM
By Edward E Leisher
Life settlement funders
are the investors who will supply the money for the purchase of an individual’s life insurance policy. Sometimes the funders use their own money to complete the purchase, but often the funds come from a group of investors who pool their resources together to fund multiple life settlement transactions with different designs.
Life settlement funders interact directly with the life settlement provider who in turn works with the producer to complete the sale on the insured’s behalf. The interaction of a life settlement transaction flows from the Life Insurance Policy Seller à Life Settlement Producer à Life Settlement Provider à Life Settlement Funders.
There are some instances where the life settlement funders are also the life settlement providers and will supply the money for the purchase of policies. Once the life settlement transaction is complete, the life settlement funders pay the life settlement provider, who then pays the policy owner.
To find out more 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 Alice Hood on Mon, Jun 28, 2010 @ 08:51 PM
By
Stephen P Turtur
Life settlement funders
are in the market to buy life insurance policies. Their primary business concern is to grow their portfolio of owned life insurance policies to create an almost exact science as to their returns. Funders do this in order to invest their dollars as to a preset criteria and the more policies they own from a probability standpoint, the closer they get to an exact science.
If you flip a quarter enough times you will get to an exact science of half heads and half tails. Life settlement funders kind of look at the investment structure into life insurance policies the same way. If they own enough policies on enough insureds the probability that their investment goal will be reached rises as life expectancy is more predictable.
Life settlement funders require a substantial amount of information in order to make an off on a life insurance policy. I have found that the funders have a greater interest in life expectancy reports verses the other elements that are necessary to procure an offer. In some cases regardless of the cost attractiveness of an insurance contract, if the life expectancy report is returned as "too long" as in the number of months/years an insured is expected to live the funder will not offer on the policy. In larger life insurance policies I have found this not to be the case. The funders may look at these larger policies differently due to the costs of doing business ratio being less of the total investment.
The life settlement funders are changing their strategies from time to time due to market changes and it is good advice to find an agent /advisor to handle this type of transaction.
Do you have an agent/advisor that is very experienced in this field, if not please click on
livepdq
Posted by Alice Hood on Fri, Jun 25, 2010 @ 03:09 PM
By Rick S Cantville
The old saying "One man's trash is another man's treasure" is just a way of saying that two people can look at the same item and find different value in it. With the large number life settlement funders in the marketplace today, that is certainly true, and none of them will find the same value in a policy as the other.
Take for instance a recent life settlement case where a client had a $7,000,000 policy for sale. The same policy information, illustrations and life expectancies were submitted to over 15 life settlement funders. Many of them declined to offer stating the policy did not meet their parameters (which may be code for "we don't have the money to buy it right now!")
The first several offers from the life settlement funders were under $100,000, the next few were in the $300,000 range and the final offer was close to $600,000, which the client accepted. Of course there was a lot of work involved to get that specific offer, but it does illustrate the importance of a knowledgeable life settlement broker, but also the difference in the parameters of the money sources that purchase policies.
Life settlement funders often have a "traunch" that will allow funders to purchase policies as long as they fit the investment strategy set forth by the traunch managers. Once the traunch is full, it is closed and may even be sold to another group of investors, but the point is life settlement funders may have money one day, but none the next simply because the door closed on the money source.
The other key point is that an experienced life settlement broker knows which life settlement funders have funds available and will know to shop them with your case.
For more information on life settlements, visit LivePDQ!
Note: Blog posts reflect the opinion of the author, which may differ from the opinion of policysettlement.com.