A pre-recorded streaming VIDEO replay of the April 2022 webcast, Unlocking Hidden Value in Life Insurance Policies for Your Clients: Life Settlements.
Topics Covered
- Be prepared to address the concern many seniors today have about protecting their families and assets against the likelihood and high expense associated with long-term care services, and discover why the National Association of Insurance Commissioners endorses Life Settlements as a means of creating funds to pay for long-term care expenses
- Certain policy characteristics and factors of the insured will determine its viability as a candidate for a Life Settlement—examine which policies are attractive to buyers and will bring purchase offers, and which ones will not
- Learn from and ask questions of speaker Richard Nottingham, CLU, ChFC—a Life Settlement expert who for 20 years has been assisting sellers with securing the highest possible purchase offers via the initiation of an auction process
Clients purchase life insurance for numerous reasons, and it is commonplace for owners of policies to decide to discontinue a policy prior to the death of the insured. Life insurance initially may be purchased to provide family security, to fund a business need, or to create estate liquidity for payment of taxes and other estate settlement expenses, but circumstances often change, or policy premiums may become unaffordable.
In these situations, your awareness of and appropriate recommendation of a Life Settlement can add value to your client relationships. A Life Settlement is a legal transaction in which the owner of an existing life insurance policy that is no longer wanted or needed transfers the ownership of it via sale to a licensed institutional buyer. The Life Settlement industry has been in existence for nearly 30 years; recent actuarial studies indicate that the face value of policies that successfully could be sold via Life Settlements exceeds $162 billion for the U.S. alone.
These transactions provide a highly regulated, safe, and confidential process that creates for sellers a cash price that dramatically exceeds the policy’s cash surrender value. A U.S. government study estimates that the average selling price of a life-settled policy is more than six times the amount of its cash surrender value.
This seminar examines the fundamentals, regulation, process, and potential positive and negative consequences of Life Settlements, as well as federal taxation on Life Settlement proceeds.