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...
Groundbreaking $2.25 Billion Life Insurance Settlement Miller Schirger LLC and Stueve Siegel Hanson LLP, law firms based in Kansas City, Mo., announce that, after six and a half years of litigation, an Indiana court has granted final approval of a $2.25 billion settlement of a class action lawsuit against The Lincoln National Life Insurance Company over alleged life insurance policy overcharges. Lincoln National agreed to settle the case by, among other things, issuing term life insurance certificates to a settlement class consisting of approximately 77,000 policy owners across 30 states. The term life insurance certificates will have a total face amount of death benefits estimated at $2.25...
Continue reading...
Simply put, a viatical settlement is an agreement for selling a life insurance policy. Why would someone do this? Should you? While life insurance can be seen as an investment for your loved ones after you pass, it may be possible for you to access some of the cash value before you die. A viatical settlement allows a policyholder to sell their life insurance for a percentage of the net benefit. It is not legal in most Canadian provinces (but in Ontario, for example, the rules may soon change, specifically around prohibiting the sale of a policy for charitable donations.) “Viatical settlement” isn’t a term you commonly hear in discussions about life insurance. It’s usually...
Continue reading...
The Insured’s Age and Health Status The most important driver of value in a life settlement transaction is the life expectancy of the insured. Age, smoking status, sex and many other factors related to the insured’s health have an influence on life expectancy. For example, the older the insured, the shorter the period of time a buyer will have to wait to collect the policy’s death benefit. Also, since the buyer will have to pay premiums until the insured passes away, the shorter the period during which they have to do this, the more attractive the policy can be. So, since age is a very significant factor with regard to life expectancy, most but not all life settlements involve older age...
Continue reading...
Filing Life Settlement Forms Guidance for the Filing of Life Settlement Forms in Accordance with Sections 7806 and 7811 of the Insurance Law In accordance with section 7806 of the Insurance Law, a licensed life settlement provider may not enter into a life settlement contract unless specimen copies of the life settlement contract form, any amendments or addendums thereto, the application form and the disclosure forms and consumer information booklet required by section 7811(a) and (b) of the Insurance Law, have been submitted to and approved by the Department of Financial Services. These forms may not be used prior to receipt of approval from the Department. Any changes or modifications to...
Continue reading...
= window.pageYOffset)? true: false; currentScrollPosY = window.pageYOffset>= 0? window.pageYOffset: 0;"> The recent article in The New York Times forecasting a continued upsurge in life settlement securitizations serves not only to underscore the increased activity that market participants have experienced first-hand over the past year, but also to highlight certain challenges inherent to this asset class. The life settlement market may indeed be poised for significant additional growth, with a rated deal rumored to be on the way and at least one of the rating agencies focused on the asset. Some experts predict that the market, presently estimated by some to be as large as $20 billion,...
Continue reading...
Pros and Cons of Life Settlements Selling your life insurance to receive life settlement can be an excellent option for handling living expenses as you age, but these arrangements aren’t for everyone. Read our list of the most important pros and cons of life settlements to help decide if you should sell your life insurance policy. What Are Life Settlements and How Do They Work? While a life insurance policy is a great way to provide for your family after you die, there are many situations where it does not make sense to keep paying expensive premiums to maintain your policy. If your children are grown and no longer need the security of a death benefit, or if you encounter unexpected...
Continue reading...
FW: Could you provide a brief overview of the life settlement asset class? DeMars : Life settlements are a financial transaction wherein a third party buys an existing life insurance policy, generally sold by an insured 70 years of age or older. The purchase price for the policy will be greater than its cash surrender value, but less than the net death benefit. Life settlements are viable investments because of regulatory constraints that create an arbitrage opportunity after a policy is issued. Insurance companies are not allowed to change rating class or insurance charges based on health changes for an individual after policy issue. Therefore, if an individual’s expected longevity...
Continue reading...
A life settlement, or life insurance settlement, is the term used by life settlement companies to describe the money received when an individual sells their existing life insurance policy. Selling a life insurance policy is a quick and easy way to obtain cash that can be used to pay for medical bills and other expenses. Amrita Financial, one of the leading life settlement companies, specializes in offering people just like you an easy way to navigate the process of turning unneeded insurance policies into cash by selling them to third parties. According to a United States Government Accounting Office report, on average life settlements pay 8 times more than the cash surrender payout offered...
Continue reading...
How a Perisen Life Settlement Works Perisen offers a new way to access cash in retirement. We buy existing life insurance policies from Canadian seniors who no longer need the protection or find the premiums unaffordable. Your Decision to Sell Your Insurance is a Personal One Life insurance is an important financial instrument we buy to protect our families and businesses. Once retired, though, the coverage may no longer be needed or may become unaffordable. Selling an insurance policy is not suitable for everyone. Reasons to sell a policy are as unique and varied as those to buy the policy originally. When a policyholder no longer needs the coverage, it is very important they have a system...
Continue reading...
