Posted by The Policy Settlement Alliance on Fri, Aug 20, 2010 @ 04:11 PM
By Michael J. Collins
The life settlement market is broken up into two different sectors of business each with their own target clientele. The first of which is life settlement agreements, these agreements target high net worth individuals that are policyholder’s of no longer needed life insurance policies. These individuals would hire multiple brokers to sell the rights to be the beneficiary to a third party. The individual will get a significantly greater amount of cash than if they were to use the cash surrender.
The second side of life settlement market is called viaticals, these agreements gear toward those that are chronically or terminally ill. The settlement market has expanded into these areas in order to provide those in need of funds in order to pay for medical bills the opportunity to have access to them.
The two areas make up the primary business that is dealt with in the industry today. Both have seen an increase in volume as the industry has grown. More and more people have started turning to the life settlement market as an option.
For further information go to LIVEpdq today.
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 16, 2010 @ 10:01 AM
By Blaine M. Ferguson
The life settlement market provides options for today's seniors. By allowing seniors to rid themselves of an unwanted, sometimes under performing asset, the settlement market opens doors that would otherwise be closed. What might seem like a complex and foreign process can be made simple and straightforward when working with a well established and trusted advisor.
Often times a person reaches a point where they no longer can afford to pay premiums on a life policy. In order to capture some gains from their investment, they can sell the policy to a provider in the life settlement market.
Situations also arise in terms of how a policy has performed internally. Because of policy under performance, you may be faced with continuing to pay premiums or paying premiums again after thinking the policy was "paid up". Instead of simply surrendering the policy, it can be sold for more the surrender value.
You may also be at a point where an existing insurance policy is no longer wanted because of changes in your estate or estate planning. A sale in the life settlement market will allow you to access your investment, and also alleviate any conflicts or problems you may be having with the policy.
Whatever the reason, considering a sale of your policy in the settlement market should be done with a knowledgeable and trusted advisor.
If you would like to know more about life settlements, please click the LIVEpdq link above.
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 10, 2010 @ 01:48 PM
By Phillip J Powell
The life settlement market has many different companies, that have all types of products. Policy holders overall financial situations change with the overall change in our economy. Many people have insurance policies that they don't necessarily need or can no longer afford.
The life settlement market currently is on the rise with different products and with different regulations due to different funders having new money sources to fund there deals. Many states are also requiring insurance companies to offer settlements as an alternative to letting insurance policies lapse. The overall settlement market is still not viewed in a good light by the insurance companies. This is a constant struggle that has gone on for years. Insurance companies make their money by pooling the insurance premiums. Life settlements force the insurance companies to pay out on policies that would other wise lapse.
The life settlement market is funded by large companies that also fund bulks of real estate loans. The two portfolios tend to mirror each other with the risks types and terms of the assets in the portfolios. For more info please go to 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, Aug 06, 2010 @ 11:22 AM
By Ian F Smith
A few reports came out over the last week regarding the life settlement market and how it will be regulated. The Securities and Exchange Commission Task Force released a report indicating recommendations to list life settlements as securities. By doing so the life settlement market would be protected under security rules and laws. They sight an inconsistancy in regulations from participants in the market, including agents, brokers and funding companies, to providers of actuarial life expectancy reports. They believe a more regulated control would lead to a safer consumer. The Chairman of the SEC Mary Schapiro wants a more cooridnated oversight to protect the consumer and more importantly, the senior market. She states that standards should be put in place to provide a more polished and trusted product. Below is the findings the Task Force came up with for their outline of the settlement market.
Recommendations:
- amending the definition of a life settlement to fall under the security category
- install monitoring devices to make certain legal standards are being met by agents and brokers
- monitoring the settlement market securitization
- consider more significant regulation of the underwriters of a life settlement
As the life settlement market evolves, more and more clarity needs to be introduced. The settlement market has done a very good job self policing and self regulating to date. But just as any significant market evolves so to do those willing to push the limits of policy and procedure. The report from the SEC Task Force exemplifies their desire to get out in front of these issues and start to put in place regulations to protect all of those parties involved. Stay tuned in by visiting our LIVEpdq webcast.
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 06, 2010 @ 09:26 AM
By Jeff Kennedy
The life settlement market is predicted to continue in steady growth according to an article in the National Underwriter. After some serious growing pains the settlement market seems to have learned some lessons and is poised to move forward as a long term financial market.
The key to sustaining the growth of the life settlement market seem to be restoring confidence in investors and brokers. This should not be a problem as the settlement market has undergone much regulation across the country preventing investors and brokers from getting burned. There is certainly more transparency and standardization as a result of these changes.
Another key factor in the stability of the life settlement market is prevention too many inexperienced brokers and investors flooding the industry. There is a backlog of seniors wanting to participate in settlements. But the last thing the settlement market needs is inexperienced companies giving the industry a bad reputation. This is where the consumer comes in and has the opportunity to choose a broker with experience and detailed knowledge of the industry!
Click the LIVEpdq link for a free life settlement evaluation with an experienced broker today!
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 06, 2010 @ 09:12 AM
By David M Epstein
The life settlement market is growing rapidly, and in the right direction. Life settlements have seen growth before, however it was more of a free for all and there was no structure behind the settlement market. Today’s growth however is much different. There is new regulation sweeping the country on many fronts. The life settlement market is functioning with a new level of transparency that is benefiting consumers. Legislation is changing the face of the market and forcing insurance companies to advise their clients of the life settlement option, a legitimate and viable financial opportunity that has been kept in the dark for many years.
Confidence in the life settlement market is growing, bringing investors and institutional funds back to the table. This is good news for consumers because it opens up a more competitively funded market.
More change is to come with suggested guidelines for the life expectancy report industry, and mainstreaming medical exams similar to the exams performed when a life insurance policy is issued.
Click the LIVEpdq link for a free life settlement evaluation today!
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 Sat, Jul 31, 2010 @ 10:51 AM
By: Joseph W. Horner
In recent years there has been such talk about how the life settlement market is an uncorrelated asset. Meaning it is not tied to any stock market, or affected by the price of oil or the happening in overseas economies. But is that really true?
While it is true that the longevity factor associated with the life settlement market is unique to this market. To say that the life settlement market is an uncorrelated asset class is not quite true. The fact is that the institutional investor monies that enable the most of the provider to purchase policies are in fact very affected by the stock markets and worldly events. Life settlement yields rise and fall fairly in sync with the rise and fall of the yields on treasury and corporate bonds. With the spread between the two being the risk factor involved (this goes back to the longevity factor of not knowing exactly when a person is going to die so that you can’t tell exactly when the investment will pay off- unlike a Treasury or Corporate bond which has a stated maturity). Another thing to look at is that many corporations and even governments are having to refinance their debt. This means the life settlement providers now have to compete with them for investor capital which can raise the price of the capital or even make it unavailable. This can affect there ability to purchase policies or service ongoing premiums.
An insurance carrier can also be affected by the same capital forces mentioned above which could affect their investment portfolios thus causing them to readjust their interest rates or mortality costs in their blocks of inforce policies (they can not do this on guaranteed type policies).
So while there certainly are parts of the life settlement market that are uncorrelated to the stock markets and world events other parts are a little more closely tied then is sometimes explained in the media buzz and marketing hype.
To learn more about the life settlement market 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, Jul 30, 2010 @ 03:33 PM
By Scott J. Dressel
Today the life settlement market is sophisticated and pools of individual life contacts have the ability to trade among investors much like other assets for an example the way stocks and bonds are traded. Over the last twenty years the life settlement market has evolved from when individual investors would purchase life insurance for upfront cash payment from an insured that was terminally ill. These transactions were known as Viaticals since the insured had a life expectancy of less than twenty four months. Insurance owned on the life of another individual by an individual investor was subject to abuse an unethical practice. Today the life settlement market is highly regulated by the individual states where transactions take place and brokers who have contact with the seller are typically licensed in the state where the business is conducted. Individual financial practitioners are also subject to rules and regulations by the firms which employ them. If someone is looking to sell their life insurance it is important they deal with a recognized and individual and firm.
For a free policy review visit our LIVEpdq link to find out the value of your policy.
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, Jul 29, 2010 @ 04:56 PM
By Rick S Cantville
The downturn in the economy in 2008 has certainly taken its toll on the life settlement market, but some experts expect a much brighter outlook for the remainder of 2010 and into 2011.
The life settlement market suffered from the downturn in the financial markets in 2008, but was also gut-punched by the change in life expectancies at the same time. A key element to pricing a life insurance policy that is for sale is how long the insured is expected to live. This is determined by a 3rd party company that will review the medical records on a client and will determine, statistically speaking, approximately how long a person has to live.
In 2008, several key life expectancy valuation companies changed their valuation tables, which caused increases in life expectancies by as much as 30%. Since rates of expected return dropped significantly, investors sought other places in which to invest their capital.
Today, insiders have seen an increase in companies willing to invest in the life settlement market. The biggest benefit is to cash-strapped seniors that may wish to sell a policy that is no longer affordable. Cash from a life settlement could go to further fund a retirement plan.
To determine how much your policy is worth, visit our online valuation tool, 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, Jul 29, 2010 @ 02:46 PM
By Amie M Wirth
I started working in the life settlement market in 2006 for a company whose principle has been in the life settlement market since the 1990’s. From the time that I started in the industry the changes have been monumental in scope.
These changes have come about due to much needed regulatory actions by the states as well as the life settlement market participants self policing of the industry. The “old school” brokers were able to leverage offers from one funder/ provider against another and have months to get offer acceptances complete.
This is no longer the case; funders give offers and require an acceptance within a short time period. Many of the “old school” brokers do not understand this and often times lose offers for clients because of the “old school” mentality.
If you are interested in selling your life insurance policy for any reason click our LIVEpdq link today for a free policy review, by doing so you will be elevated of the hassle of dealing with a broker who is stuck in the past and not willing to change as the life settlement market grows and changes.
Note: Blog posts reflect the opinion of the author, which may differ from the opinion of policysettlement.com.