One of the most prudent principles to apply when looking to construct a well-diversified portfolio is to include assets that are uncorrelated, that is, do not move in the same return direction at the same time. To this end, life settlements have no relationship with other financial investments and can offer a stable source of income, and the asset class has been gaining attention worldwide as investors seek fixed income alternatives in a low interest rate environment. However, many SMSFs are unfamiliar with life settlements as an investment option. The underlying assets of life settlements are life insurance policies. Investors can make money on the assets by buying the policy to receive...
Continue reading...
Many people think of life insurance in rather uninspired terms. They generally consider it a liability and an expense that shows up in cash flow projections, not a true asset. This is sometimes why investors will surrender a policy or let one lapse. But before doing either of those things, policyholders should consider a life settlement. When used strategically as part of a comprehensive financial plan, a life settlement can provide significant value to individuals, companies, trusts, or other policyholders. Let’s look at what life settlements are and how they can help unlock creative solutions for affluent investors and families. What is a life settlement? A life settlement is the sale of...
Continue reading...
Since the 1990s, the life settlement space has evolved into an established, regulated industry. This evolution has largely been due to the passing of state legislation, plus the definition of industry best practices by the National Association of Insurance Commissioners (NAIC) and the National Conference of Insurance Legislators (NCOIL). In 2000, for example, NCOIL adopted the Life Settlements Model Act. The act defines requirements for the licensing of agents and providers, life settlement contracts, reporting, advertising, and disclosures, among other things. It also outlines prohibited and unfair trade practices. The Life Settlements Model Act was revised in 2004 and again in 2007, but...
Continue reading...
A life settlement, sometimes called a “senior settlement”, is the selling of one’s existing life insurance policy to a third party for a one time cash payment. In exchange for the one time cash payment, the third party becomes the owner and beneficiary of the policy. “Viatical settlements” typically involve those with two years or less to live and the Viatical settlements are regulated and handled by the life insurance company itself. Life settlements, on the other hand, do not involve the insurance company. Instead, Life Settlements involve third party investors and brokers who buy the life insurance policy. Usually, the third party who purchases the life insurance policy is an experienced...
Continue reading...
A life settlement or viatical settlement involves the sale of a life insurance policy for more than the policy’s cash value and less than its face value. It is always greater than what the issuing life insurance company will pay for the surrender of the policy. In addition to age, expected life expectancy, and policy characteristics – including premium costs – other factors determine the final amount disbursed to the policyholder. For many, life insurance settlements can convert an unneeded policy into an asset with substantial value. In a life settlement transaction, a seller transfers ownership of their policy to a buyer. All aspects of ownership transfer, including the premium payments...
Continue reading...
An alternative to the lapse or surrender of your life insurance policy. A Life Settlement is the sale of an existing life insurance policy to a third party for more than its cash surrender value but less than its net death benefit. Such transactions are usually undertaken for the purposes of estate or financial planning. Life settlements can be a valuable source of liquidity for people who would otherwise surrender their policies or allow them to lapse—or for people whose life insurance needs have changed. Many seniors today are discovering that life insurance policies that once seemed appropriate, are no longer needed or no longer meet their needs. Typically you have...
Continue reading...
How does life insurance claim settlement work in India? Though life insurance is primarily intended to meet the unexpected loss of income owing to the death of the life assured; with the changing times, it has also been looked upon as an instrument to cover many other events such as scheduled expenses, risk of living long, critical illnesses and disabilities, etc. Claims pay-out is perceived to be the ‘end of spectrum’ and most important milestone in the life cycle of a policy. This is where, as they say, the rubber hits the road. While the policyholder completes his part of the commitment by paying due premiums; fulfilment of the promise from the insurer’s side is completed by payment of...
Continue reading...
Ohio federal District Judge Matthew W. McFarland gave final approval to a $28 million settlement agreement between US Financial Life Insurance Company and a class of policyholders. The class alleged the insurer improperly increased the cost of insurance (COI) charges on certain universal life products beginning in 2015. “We are pleased that Judge McFarland approved the settlement agreement with very good relief and benefits to class policyholders,” said W. Daniel “Dee” Miles, III, head of the Beasley Allen’s Consumer Fraud Section. He served as lead class counsel along with Beasley Allen’s Rachel Minder and Paul Evans. Plaintiff Vivian Farris, trustee for Wirt Adams Yerger, Jr....
Continue reading...
Life insurance settlements are a profitable way for people to sell their unwanted life insurance policies to third parties. Unfortunately, the level of information provided from one life settlement broker to the next isn't always consistent. That means that sometimes policy owners aren't getting the information they need to make the most well informed decision. At Amrita Financial we pride ourselves on our unsurpassed customer service and expertise that have helped to make us one of the leading life insurance settlement companies in the United States. With Amrita Financial, seniors are empowered with access to a number of financial institutions that compete for their policy. The more...
Continue reading...
The Iowa Insurance Division regulates the sale of viatical settlements. Viatical settlement providers purchase viatical settlement contracts and provide the viator a sum of money in consideration for a life insurance policy. A viatical settlement provider must be licensed by the Iowa Insurance Division by completing the Viatical Settlement Provider License Application. A viatical settlement provider must renew its license every three years by completing the same application. Viatical settlement providers must submit an annual statement required by the Iowa Insurance Division by March 1 of each year per the instructions in Iowa Code Section 508E.6 and Iowa Administrative Code rule 191-48.7...
Continue reading...
