Learn All About Senior Life SettlementsWhat is Life Settlement?News Flash! Senior life settlements are here! Life insurance is a traditional asset that can now be purchased or sold. Whether you call it senior life settlements, life insurance settlement or senior settlement – it is all the same - the sale of an existing life insurance policy by a senior (a person 65+ years old) on the secondary market to an investor for a percentage of the insurance amount. Senior settlements allow policy holders to receive a lump sum of cash in exchange for transferring the rights of ownership of the policy to the buyer. In almost all cases, a life settlement will be less than the policy’s death benefit, but much more than its cash surrender value. Through the writings in learn-about-cash-flow.com, you will come to understand that a life insurance policy is personal property, much like a house, car, antiques, old painting or stocks and bonds. Therefore, you can sell your life insurance policy much like you can sell any of your other personal property items. The resulting funds from senior settlement sales can be used for any number of different purposes including everything from paying medical bills to going on a dream vacation. These senior life transactions provide seniors unique opportunities to benefit immediately from the market value of an existing life insurance policy and reuse those funds for whatever purpose one chooses.
Why Senior Life Settlement?Most of us have a life insurance policy. We pay the monthly premiums and consider it a sound financial investment…and normally it is. The thought is that when we die, there will be money to pay all taxes, various bills and money left over to ensure that our family and loved ones will not be left destitute. Sometimes, however, due to certain changes in personal situations, a policy holder may no longer need to have the life insurance policy or that particular policy. So, there is little point in keeping it and continuing to pay the premiums. Prior to the existence of the life settlement secondary market, owners of an unneeded or unwanted policy had only two options, neither of which was too financially sound: - Sell the policy back to the institution that issued it for its cash surrender value (often very low, if any value at all). - Allow the policy to lapse and waste years of paid premiums. With the advent of the life settlement industry, this no longer needed to happen. This secondary market has made it possible for policy owners to sell their life insurance policy in the same manner as stocks and real estate via an open market system. It is comprised of a large group of highly credible, institutionally-backed funding and investments sources. These are large multi-million and multi-billion dollar companies. A senior life settlement represents a "Win-Win" situation for both the insurance policy seller and the institutional buyer. However, millions of seniors (…and the millions of others who care for them) are unaware of how flexible insurance policies have become. They do not realize that they can sell them for cash. It presents a unique opportunity to extract the maximum value of a senior’s existing life insurance policy and repurpose those funds for whatever financial needs they may have. A senior purchases a policy based on the expense of the premiums and the need for a certain amount of death benefit. However, in most cases, these needs change over time. Thus, senior life settlements have completely transformed how senior citizens view buying, owning and the possibility of selling their life insurance in the secondary market. Once upon a time, nothing could be done to recoup the loss of the premiums paid into a policy with nothing in return. Now, using senior life settlements, a senior can sell his or her existing policy to a life settlements broker and receive a large percentage of the policy's face amount, and use the money for anything they wanted. There is no restriction on how the funds can be used. Once, one of the most illiquid and static investments in the past, life insurance can now be put into motion using senior life settlements. Instead of continuing to pay for obsolete insurance or funding a policy that will not benefit anyone, seniors can now obtain senior life settlements and receive the funds they have earned throughout their life, instead of giving their hard earned money right back to an insurance company through lapsing or surrendering. When an insurance policy is purchased, it is under the assumption that the purchaser will not personally benefit from the invested premiums, but his/her beneficiaries will. The future prospect of return of the invested premium is the justification for funding an extremely expensive and negatively amortizing product like life insurance. However, senior life settlements have been created to help alleviate the burden of these policies when the needs, feasibility, or affordability of the policy has changed. Traditionally, life insurance has not been a part of financial planning. Most financial planners did not factor in life insurance as an investment. Many, if not most, were unaware that a product existed that could turn a negative investment, like life insurance, into a positive windfall of cash. That is what
senior life settlement does. It converts a dead-end policy into a financial gain that can act as a bonus to a senior’s established investments and retirement situation.
Senior Life Settlement HistoryThe robust senior life settlement secondary market emerged as an outgrowth of the viatical settlement market from the late 1980’s. During this time period, many AIDS patients were forced to sell their policies to fund extremely expensive care in the final stages of their lives. Third party financing firms were willing to pay these patients a significant portion of the death benefit in cash and wait until their death to collect the proceeds. The short time until the anticipated mortality event created a highly predictable investment return for the financing firms. The senior life settlement market, on the other hand, does not focus on terminally ill patients, rather, healthy, elderly individuals with no desire or need for their existing policies.
Senior Life Settlement BackgroundThe senior life settlement market was estimated at $5 billion in 2004. In 2006, it topped $19 billion. Deloitte Consulting LLP has estimated that the senior life settlement market will grow to over $100 billion. Impressive as this figure is, some have even predicted that the market to “grow…to $160 billion over the next several years.” (Source: Bernstein Investment Research of New York City, 2006). The number of individuals in the United States over age sixty five (65) will grow from 34 million today to a projected 69 million by 2030 – representing over twenty five percent (25%) of the US population (Source: US Bureau of Census). These statistics highlight the explosion and rapid expansion potential of the life settlement market and its entrance into the mainstream financial planning industry. Of the $1.4 trillion in overall life insurance cash value in 2002, it is estimated that senior citizens held policies worth $492 billion. It is also estimated that more than 20% of policyholders over age 65 are holding policies whose economic value exceeds their cash surrender value. A number of market forces are driving the explosive growth of this relatively new industry. Chief among these are the following: - The increasing average lifespan in the US is causing many persons to outlive the usefulness of their policy. Additionally, the dramatic, growing number of baby boomers reaching senior age (65+ years old) each day will push this number much higher at an alarming rate. - Lower interest rates of the last several years have reduced policy values. Many policy holders purchase insurance policies as investment instruments. Unfortunately, for many of them, the low interest rates investors have experienced in recent months and years have caused their insurance policies to under perform. For many policy holders, this point is key. They rely upon their policy receiving a sufficient interest rate to generate enough interest income to self-fund the premiums. However, when the interest rate is not high enough to generate enough income, the policy holder must pay the premiums out of pocket. - Potential elimination of the federal estate tax may result in the sale of many survivorship policies into the secondary market. Many survivorship policies are purchased as a hedge against the ravages of estate taxes. Should the estate tax be significantly lowered or eliminated, the need for these survivorship policies would not be nearly as great. Life settlement will be a very profitable alternative to cancellation. Therefore, we expect that many of the policies would be sold in the senior life settlement secondary market. - Development of this market will likely result in a fiduciary duty of advisors to inform their clients of this market. The senior life settlement market is still fairly new. The ability of policy holders to sell unwanted/unneeded policy in a secondary market is still a fairly new concept that has yet to become an automatic consideration. Even now, as the benefits of senior life settlement becomes more widely known, trustees and other professional advisors are becoming obligated to explore this new valuation approach before letting unwanted coverage lapse under a growing threat of lawsuits from their beneficiaries and clients. - With the recent economic slowdown, money is becoming scarce, especially for many seniors. They are having to work longer to make ends meet; put off retirement and head back to work due to a disintegration of retirement savings and investments; adjust their living arrangements as their children and grandchildren came back home to live with them; struggle to pay adjusting mortgage payments; etc. Most policies are lapsed because of costs or other financial strains. Few senior policy owners realize that their policy might bring 5% to 25% of the death benefit through life insurance settlements or senior life settlements. On average, life settlements are at least three times larger than policy cash surrender values. This is virtually money in the bank for them.
The Life Settlement MarketplaceAccording to life insurance industry statistics, approximately $ 1.5 Trillion of life insurance lapses or is surrendered annually in the US. The most comprehensive and widely known study of the life settlement marketplace, released by Conning & Company in 1999, indicated that nearly $160 Billion worth of insurance in force for seniors (65+ years old) may qualify for settlement in the next several years. While exact figures as to the total face value of settlements purchased in the past decade are hard to come by, industry estimates indicate the total volume of policies purchased over the coming decade will grow 5 to 8 fold. (This study has since been updated several times. For more information see www.conning.com) What this means is that the potential for success as a provider of life insurance settlement services has never been greater. The marketplace in which life insurance settlements occur is driven, in large part, by the same forces driving all financial services businesses, namely demographics. In general, the aging of the US population and the gradual shift from asset accumulation to asset management and, eventually, asset consumption has resulted in an increasing interest in alternatives to more traditional planning processes. This, in turn, has sparked a growing interest in life insurance settlements as a means of extracting additional value from an asset normally thought of as being “dormant”. The typical settlement transaction involves a policy bearing a face value of $1.5 to 2 Million. The typical insured is aged 74 years or more, and is considered to be a “wealthy” or “high net worth” individual. These characteristics indicate that policy owners who offer their policies for sale in the secondary market are doing so within the context of a more comprehensive financial planning process. Therefore, it makes sense to consider the life insurance settlement process as both a means to uncovering other client needs and as an end in itself. In short, as policy owners’ financial circumstances change, opportunities to identify and present the settlement option as a viable planning concept will continue to arise. Advisors who offer this service in a professional manner, with the backing and support of an experienced, reputable and well-financed
settlement firm will be well positioned to capitalize on this significant potential.
What Is Behind This Explosive Growth?A huge secret is one of the big reasons why senior life settlement is exploding: It turns out that over 90% of life insurance policies never make a payout. This is because most people let their policies expire (lapse) or turn them back in to the life insurance company for a small settlement (surrender). Companies have factored this in to their pricing, resulting in policies which are a bargain, especially in the senior market. In fact, if you are 65 or older with a policy of over $100,000, investors have been paying 10-20% of the face amount in senior life settlements. As you have read on this website, life insurance policies are valuable investment assets. So, why sell such a valuable asset to an investor rather than leave the face amount for your children? Recommendation: Keep the policy unless you can no longer afford it, or if you have no children or other beneficiaries to whom you would like to leave a gift. However, if you can no longer afford the premiums, or you have no other use for the policy, obtain a senior life settlement quote instead of letting it lapse. Another reason senior life settlements are exploding in popularity as a financial tool is that they are seen by many as a viable alternative in senior retirement planning. They have been used to raise investment capital, establish charitable foundations, finance annuities, finance securities, and eliminate high premium payments. They are becoming a tool which allows many seniors alternatives to traditional retirement planning. Life settlements are an extremely useful tool to diversify financial portfolios. To understand the power of senior life settlement, take the following for example: The client was a 73-year-old male with a $1,500,000 Variable Universal Life policy. The policy’s cash surrender value was $2,600.15. The client no longer needed the policy. He could have surrendered the policy for its $2,600.15 cash surrender value. However, he decided to get the policy appraised for its life settlement value. That value was assessed at $345,000.00. Had he surrendered the policy, he would have lost $342,399.85. This is the value of senior life settlements. This amount of money can be a life changer for many families. In this case, this client was able to fund his grandchildren’s education and pay his bills. Click Here For More Senior Settlements Examples
What Should You Do With Your Policy?This is one of the most important questions a senior faces. As with all of your assets, understanding your life insurance policy’s fair market value in the life settlement marketplace is vitally important in better understanding your financial position. Therefore, it is advisable that you get your policy appraised for its actual market value. You can do this by getting a senior life settlement appraisal or quote. This is simple, free and non-binding. Things change with time, including your financial plans and your insurance needs. Your life insurance policy has a limited use during your lifetime. A life settlement is the more lucrative alternative to letting the policy lapse or surrendering it to the issuing insurance company. Whenever policy owners are considering lapsing or surrendering a life insurance policy for any reason, they should explore the life settlement option with their financial advisor. A life insurance policy is like all assets in that it is only useful, if it is valuable to you. In life, our circumstances change, and for some people, their policy is no longer useful. According to recent studies 90% of all life insurance polices lapse, and no one receives the benefit of monthly premiums. With
the help of life settlement companies, you can extract the high cash value from your policy instead of letting it lapse.
The Basis For Selling a Life Insurance PolicyBefore life settlement transactions existed, policy owners whose financial circumstances had changed found that policies purchased in the past neither met their current needs nor were they easily altered to achieve current objectives. Therefore, agents, accountants, planners and other advisors were often limited in their ability to offer their clients alternative strategies to using previously purchased coverage to address new financial goals. The default recommendation in most of these cases was to either lapse or surrender the policy. A lack of options also restricted the policy owner to dealing only with the issuing insurance company with regard to the disposition of the policy. This situation describes what is known as a monopsony, in that only one buyer, the insurance company, was available to offer the seller, the policy owner, any value for their policy. Since life insurance is a form of private property, senior life settlement companies serve as a free market alternative to this condition and, thereby, offer policy owners an alternative outlet for the sale of their private property. Rather than simply allowing a policy to expire worthless or surrendering it to the issuing company, life settlement firms are able to assist consumers in their effort to maximize the value of an otherwise dormant asset.
Senior Life Settlement QualificationsThere are as many qualifications as there are Life Settlement companies. However, several consistent factors among the majority of senior life settlement companies exist. These are: - Minimum age of 65 - Minimum policy face value of at least $250,000 - The policy must have been in force for at least two years, so that the policy will have past its contestability period - The premium percentage on the policy should be 55 or less - Policy type should be whole life, convertible term, universal life, variable life, joint policies, key man policies and even some group life policies (…you will need to ensure there are no existing liens on the policy).
When to Consider a Senior Life Settlement SolutionWhen should a senior consider a life settlement solution? Why do people sell their policies? Answers to these questions are as varied as there are clients. Each potential client has his or her own reason for seeking a senior life settlement. However, most life settlements occur because the circumstances which originally prompted the purchase of the life insurance policy have changed. Having said this, there are several major reasons clients give as their primary reasons for seeking a life settlement: - Life insurance premiums became too expensive to continue paying - Life insurance policy did not fit their re-evaluated estate planning - Key man’s status within the organization changed - There was a change in health condition - Policy was approaching a lapse - Policy holder considered purchasing new insurance coverage, such as long term care coverage - There is no beneficiary for the current policy - Policy becomes too expensive to pay - Policy is no longer needed or wanted - You require funds to maintain or improve your standard of living, and lower or no premiums can help - When you need money to cover high costs of long term care - When you are interested in using your policy's value for other investments - When you need money to ease the daily stress of paying current bills - When you need to sell for other personal or business reasons - When the beneficiaries of the insurance policy die before the policy holder - When a change in business ownership makes the policy unnecessary - When the policy has not performed as expected or premium payments have become burdensome
Reasons Why Seniors Sell Their PolicyNow, that we have determined under what circumstances seniors consider selling their policies, what are the specific personal, business, estate planning and non-profit reasons seniors actually sell their policies. Here are some of the more common ones:
Personal Reasons:
1. The original purpose or need for the policy has changed or has totally diminished. The policy owner has decided he or she no longer needs the coverage and has informed their advisor of their intention to surrender or lapse the policy. 2. The beneficiary of the policy is deceased. The insured person has outlived their beneficiaries such that there is no longer a need for the policy. 3. The policy holder is chronically ill. Selling the current policy provides needed funds to cover financial burdens caused by the illness. This may prevent family members from having to pay huge medical bills in the event of the policy holders’ death 4. Policy has not met the original illustrated values and premiums need to be increased to keep policy in force. Policies which were sold under the assumption that after a limited number of premium payments, the policy would “self-fund” have proven not to be supportable and new premiums are due to keep the coverage in force. As a result, the policy owner decides the coverage is no longer desirable. 5. A life settlement or senior life settlement maximizes the current assets by eliminating premiums and getting required funds that can be used today. 6. The insured person wishes to distribute the funds/ liquid assets as per his or her desire while living. 7. To make funds available for other investments like real-estate, stocks, bonds or to start a new business. 8. A divorce settlement has altered the need for life insurance. 9. Personal financial situation has gone bad, making premium payments unaffordable. It is no longer possible to keep up with or pay the regular Insurance Premiums. Failing to pay could cause the policy to lapse and mean financial loss for you. Selling the Policy before it lapses will be more profitable. 10. The policy owner needs cash for some other purpose and sells a policy to meet the objective. Sale proceeds from life settlements are needed to pay down loans or outstanding debt. 11. The policy owner’s current asset mix is weighed too heavily in life insurance. 12. A policy holder wishes to invest in a more appropriate product, such as a lower cost survivor policy, single premium annuity for supplemental income, long term care insurance, long term care insurance or other asset protection tools. 13. A family trust has eliminated the need for personal life coverage. 14. Policy holder needs to fund an alternative healthcare option that present insurance does not cover. 15. Insured person has left an employer, so he or she needs to sell an old group policy. 16. Policy was purchased to ensure the availability of funds to pay off a mortgage and the mortgage has been paid. 17. To take a long awaited vacation or to buy a luxury item that was never affordable. 18. When a policy is in danger of getting lapsed, the policy holder can turn it into cash. 19. Donate to a favorite charity or cause and feel much better about yourself knowing that you have done your part to make the world a brighter place. 20. As mentioned before, you may no longer require the Policy. You don't have any family, friends, or favorite charities to leave money or property to after you're gone, and so having a Life Insurance Policy is pointless. You don't need it. And you can use the money from the senior life settlement to try out all the different things that you always dreamed of doing. Live it up while you still can. 21. You want extra retirement funds to meet your daily living costs. 22. You want to monetarily assist your family. Maybe your kid is going to college or starting a business, and funds are badly needed.
Business-Related Reasons:
1. Business-owned policies are performing below expectations. 2. Key person insurance policy is no longer required due to retirement or change in business structure. The policy was purchased by a business to fund a buy-sell arrangement should one of the partners or shareholders die prematurely. A change in ownership makes the current policy obsolete. A key employee in the business leaves the firm and coverage purchased to insure that person is no longer needed. 3. A policy purchased to finance a buy/ sell agreement is no longer needed after the business has been sold. The business is being sold and the need for coverage protecting the previous owner(s) is no longer relevant. 4. A business failure causes bankruptcy. Assets must be liquidated. Life insurance covering owners or key employee may have value in such the liquidation process. 5. Deferred compensation programs in business have changed or is not required. Therefore, the policy is no longer needed. 6. Selling corporate-owned life insurance lets you retain premium payments. Estate Planning Reasons:
1. A single life insurance policy is no longer appropriate - a survivorship policy meets the estate planning requirement and 1035 exchange is avoided. An examination of the policy owner’s financial affairs indicates that a survivorship policy is preferable to individually-owned coverage. It may be possible to sell the individually-owned policy and use the proceeds to pay all or a portion of the premiums for the new survivorship policy. 2. If you are managing an estate, selling your current life insurance policy will help manage changes in estate size, eliminate premiums, and liquidate policies that are no longer needed. 3. Changes in the policy owner’s net worth results in eliminating the need to pay sizable estate taxes. Thus, the policies purchased to provide excess cash are no longer necessary. 4. A policy needs to be removed from an estate. The three year rule can be avoided by using the life settlement sales proceeds to repurchase a new policy out side the estate. Policies which can be included in an estate tax calculation must be removed from the owner’s estate immediately. Such policies can be sold and the proceeds transferred outside the estate by making gifts to trusts, charitable organizations or individuals. 5. There is a significant reduction in size of estate due to loss of net worth and less insurance coverage is needed to fund the projected estate tax liability. 6. Changes in tax law have made a previously implemented estate plan less effective and thus life insurance purchased as part of the old plan’s structure no longer makes sense.
Non-Profits:
1. A nonprofit organization owns a policy insuring the life of a board member, key donor, or other benefactor but the donor no longer wants to contribute funds to pay premiums. Rather than lose the value of the policy entirely, the charity may sell the policy and use the cash proceeds for other purposes. 2. The grantor of an irrevocable life insurance trust decides not to continue making the annual gifts necessary for the trust to continue premium payments. The policy owned by the trust may be sold and the proceeds used for other purposes. 3. The policy owner intends to make a gift of life insurance to a nonprofit organization. However, the nonprofit would prefer to receive cash. The policy owner can maximize the value of the gift and provide cash to the charity through the settlement process.
It is important to note the underlying theme in all of these examples: change. When the policy owner’s circumstances change, the settlement option may come into play. However, it is change — changes in needs, changes in objectives, changes in cash flow, changes in estate plans, changes in health, and changes in life — that cause previously purchased life insurance policies to be lapsed, surrendered, exchanged or sold.
How Do Senior Life Settlements Work?In a nutshell, senior life settlement works like this: the financing firm will pay the policy holder an agreed-upon amount for the life insurance policy and, will, thereby, own it. The policy holder transfers all rights and obligations to a new owner. It now becomes the new owner’s responsibility to pay the insurance premiums to the insurance company from that point forward. Since the financing firm paid for the policy, they now own it - and are now paying the premiums. They, not the policy holder's descendants, will receive the entire insurance pay out in the event of the policy holder's death. Senior life settlement is normally limited to those who are seniors (65+ years and older). You also have to be in reasonably good health to go for this type of financial option. You will probably be asked to provide details about your medical history before the contract is finalized. Whenever policy owners are considering surrendering a life insurance policy or letting it lapse for any reason, they should explore the life settlement option with their financial advisors. Owning life insurance is actually a form of investment, and the return on that investment is the death benefit paid to the policy's beneficiaries. Historically, a life insurance policy is one of the most reliable investments available anywhere, because the death benefit is guaranteed by the full faith and credit of very highly rated institutions with many billions in assets.
The Senior Life Settlement ProcessThe senior life settlement process is not particularly complicated. There are any number of companies which purchase life settlements, and, therefore, there are just as many ways in which they perform this process. What follows is the usual process: STEP 1 Policy owner or their representative request a Life Settlement application packet. The policy owner who would like to sell an insurance policy is required to fill out an application, a "policy information release" and a "medical information release." The "policy information release" allows life settlement brokers to retrieve information about the policy from the life insurance carrier such as the policy illustrations, premium amounts and due dates. It also provides verification that the coverage is enforce and current on premiums due. The "medical information release" allows the broker to retrieve the last 5 years of medical information from the insured's physician(s). STEP 2 The application is completed along with the requested authorizations. This includes: Authorizations to collect medical records and up-to-date policy information from the applicant’s insurance carrier. The medical information is sent to a third party life expectancy company which will issue a private report within 15 to 20 business days. This report is a broad mortality curve of 1000 people with similar age and medical condition. This report is not shared with the policy owner. STEP 3 The Life Settlement Company collects needed information including attending physician statements, insurance policy copies and illustrations, etc. for review. STEP 4 There are generally two ways companies go about arriving at a senior life settlement quote. The first way, some brokers use the submitted information to obtain bids from a number of funding organizations. These senior life settlement brokers work to obtain the highest possible offer from the funding organizations who submit offers to purchase the policy. These organizations may be a group of investors, investment firms or even other insurance companies. The second method involves huge insurance companies. These multi-billion dollar companies serve as both broker and funding organization. Once they receive the information, they send it to in-house underwriting. Their underwriting group will arrive at an offer they can use to obtain the policy and make a reasonable profit. Either means will arrive at a reasonable offer. STEP 5 Settlement offers are relayed to the policy owner or their representative for acceptance. STEP 6 Upon acceptance of an offer, contracts and insurance policy change of ownership documents are forwarded to the policy owner or their representative for review and signatures. The policy owner will be required to fill out and sign a change of ownership and change of beneficiary form to send to the insurance carrier. In many cases, the contract must also be signed by the policy's beneficiary. STEP 7 The signed documents are returned to the funding organization. The documents are then forwarded to the insurance company to record the change of ownership. Similar to a real estate transaction, an escrow agent is used in the sale and change of ownership of the policy. Therefore, the funding firm will send the sales proceeds to a third part escrow agent while the change of ownership/beneficiary forms are being processed by the insurance carrier. This prevents the buyer from holding the sale proceeds and the ownership of the policy. However, unlike a real estate closing transaction, the seller will not incur any closing fees in a senior life settlement transaction. STEP 8 Upon written verification that changes of ownership and beneficiary have been recorded, settlement funds are wire-transferred into the account designated by the policy seller. Some senior life settlement companies will allow up to 15 days for change of mind and life settlement transaction cancellation.
The entire process typically takes 3 to 6 weeks to complete, depending upon the length of time it takes to receive necessary documents, such as physician statements.
How Much Will You Receive?The amount you will receive in a Life Settlement reflects the discounted future value of your life insurance proceeds. There are several important factors in the computation of this "present value" amount. These factors include: - The health condition (life expectancy) of the insured - The annual cost of maintaining premium payments - The policy face amount, and - The funding company’s discount rate
What Happens Should A Client Change His Mind About The Settlement?Well, the good news is you can cancel the senior settlement contract within 15 days of having received the money. Just make sure this stipulation is present on the contract before you sign it. If you should die within 15 days of receiving the money and there is no statement regarding this eventuality in the contract, the policy gets canceled. Just remember: You must return the funds in their entirety before you will receive your policy back. What is Difference Between Life Settlement and Viatical Settlement?Throughout your investigation of senior life settlement, you will undoubtedly come across references to “viatical”. Don’t be thrown by this term; it is easy to understand. There are many similarities between senior life settlements and viatical settlements. Both are products that will liquidate a current life insurance policy in exchange for a large cash settlement for the policy owner. Additionally, both products are based on life expectancy…and that is also where their biggest difference lie. Viatical is a settlement designed for an individual of any age with a terminal or chronic illness. The client can actually be any age, from a young adult to a very senior elder. For viatical settlements, age is not important. What is most important? The client’s expected length of life is; the shorter, the better. It is also important to note that viatical policy holders make the decision to sell based primarily upon a NEED for the money paid to them. On the other hand, the typical senior life settlement seller has concluded that they no longer WANT or need the coverage the policy provides and they prefer to apply the proceeds of the sale (and the premiums they will no longer have to pay) to other financial objectives.
Senior life settlements, however, are designed for individuals 65 and over whose health may have declined since the policy was purchased, but not to the point that the primary medical conditions involved are described as being life threatening or which prevent the insured from performing primary
activities of daily living (ADL). In fact, life expectancy for Life Settlement clients may extend for as many as 15-19 years past the senior's current age.
Are You Looking For A Senior Life Settlements Appraisal?Are you seeking a senior life settlements quote? Are you a relative or caregiver of a senior who is seeking a senior life settlements quote? Or are you an estate attorney, non-profit organization, financial planner, insurance agent or college endowment interested in obtaining a senior life settlements quote? Are you unsure of what to do next? Confused? Need help? Then, you have come to the right place. At learn-about-cash-flow.com, we are here to provide you the help and guidance you need. What's your next step? Simply, click on the link below. We will ensure that a representative from a verified senior life settlements company contacts you within 48 business hours.
Click Here To Get Your Free, No-Obligation Senior Life Settlement Appraisal
Subscribe to the
|
