What is Life Settlements? - Part One

In late 2010 institutional money began to reenter the life settlement market after a pullback initiated by fears of inaccurate life expectancies and the cash crunch caused by the turbulent market. New buyers continue to enter the life settlement arena as investors seek long term returns that exceed 10 year corporate bond rates.

Markets have changed. Client goals have changed. Life insurance policy owners may be searching for liquid assets to improve their cash positions. Some policy owners' indemnification needs have altered as net worth statements have declined dramatically in tandem with temporary increase in estate tax brackets.

The demographic target market on life settlements fall into two basic categories for life insurance owners: beginning at age 62 for term life insurance and age 70 for permanent life insurance. Term life insurance contracts can generate substantial economic leverage proviso the contract has a conversion to permanent clause and is exercised during the conversion period. Some term contracts actually have conversion credits which can add additional leverage to the sale of the contract.

Life settlements use several mortality product platforms within the inventory of permanent life insurance policies and include variable universal life, whole life, current assumption life, indexed universal life and guaranteed universal life.

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[BrokersAlliance]

@travelchamp thanks for the inquiry. Life settlements are the sale of a life insurance policy to third party for financial consideration. The industry at large has been on the sidelines for the last 3-4 years and only recently has begun to emerge as an alternative for policy holders who desire to sell their contracts. Opulent has been a leader in the resurgence of life settlements.Other firms are just now awakening to the market recovery.

[travelchamp]

RE: 62 for term life insurance.

Is this across the board, whole country? OR is this JUST his firm, the minimum they look for?