On May 3, the Life Insurance Settlement Association (LISA) released findings from its 2021 Annual Market Data Collection Survey. The data collected represents summary closing data from 2021 life settlement transactions with twenty-three LISA provider members contributing data to this effort.
Consumers were paid over $750 Million by LISA Members for the sale of their unwanted life insurance policies
May 23, 2022 5:12:16 PM / by LISA posted in Financial Advisors, life settlement, Life Insurance Settlement, Industry Trends, Life Settlement Provider
The Evolution of Regulations that have Benefited the Consumer
Feb 23, 2022 9:10:00 AM / by Jon B. Mendelsohn CEO, AsharGroup.com posted in life settlement, Life Settlement Broker
The life settlement industry was born in 1911 when Supreme Court Justice Oliver Wendell Holmes Jr. and his fellow justices ruled that life insurance is private property and can be legally assigned by its owner. The decision came from a lengthy battle that began when John C. Burchard sold his life insurance policy for $100 to his doctor, Dr. Grigsby, and Dr. Grigsby agreed to assume the remainder of the premium payments (that were overdue already) in exchange for the death benefit. After Burchard’s passing a year later, the executor of this estate contested this transaction, and that’s when the case was brought before the highest court.
After the recession in 2008, more laws to protect policyholders, investors and insurance companies have been put into place, making the industry one of the most well-regulated and transparent financial transactions in the country, and ever more appealing to policyholders and investors alike. In fact, more regulations sparked an increase in life settlement activity.
Currently, forty-three states and Puerto Rico now regulate these transactions, and an estimated 90% of the entire US population is protected by comprehensive life settlement laws and regulations, which tend to focus on these top three protections:
Combating Inflation with Life Settlement Earnings
Oct 13, 2021 9:10:00 AM / by LISA posted in Financial Advisors, life settlement, Life Insurance Settlement, Life Settlement Provider
Everything is getting more expensive these days. Gas prices are higher, food prices are higher, used car prices are higher—it seems like nothing right now is immune from the effects of inflation. And it’s not going away anytime soon.
How Did Insurance Policy Owners Earn $848 Million in 2020?
Oct 6, 2021 9:10:00 AM / by LISA posted in Financial Advisors, life settlement, Life Insurance Settlement, Life Settlement Provider
It’s true—according to “The Life Settlements Report” released by The Deal, 3,241 people sold their life insurance policies in 2020 for a combined total of over $848 million. It’s a staggering number, and despite the societal impacts of the COVID-19 Pandemic, it represented a significant increase over the amount that was sold the year prior.
Working With Life Settlement Professionals
Jul 20, 2021 9:00:00 AM / by LISA posted in Financial Advisors, life settlement, Life Insurance Settlement, Life Settlement Provider
How to Help Your Client Choose a Life Settlement Provider
Jun 9, 2021 9:10:00 AM / by LISA posted in Financial Advisors, financial stress, life settlement, Life Insurance Settlement, Life Insurance, Life Settlement Provider
Many life insurance policy owners may wonder where to start when pursuing a life settlement provider. Selling a life insurance policy is an important decision for policyholders to make and one that should not be taken lightly. They need to know they can trust their provider to help them sell their policy, which is why the decision must be evaluated on a case-by-case basis. Having a complete understanding of your client and their goals is imperative in guiding them in their determination of how to choose a life settlement provider.
5 Reasons Why Your Clients Need Life Settlements
May 27, 2021 9:10:00 AM / by LISA posted in financial stress, life settlement, Life Insurance Settlement, Life Insurance
Life settlements are a great way for retirees to gain a bit of extra cash in times of need. They are generally a win-win for everybody involved, from your clients who receive them to the institutions that invest in them. While there are lots of rules and regulations surrounding the selling a life insurance policy, it can definitely be a great way for policyholders to receive funds if they realize they no longer want or need their policy. In this blog, we’ll cover a few reasons why your client may need a life insurance settlement.
What Is a Fiduciary Responsibility for Financial Advisors?
May 19, 2021 9:10:00 AM / by LISA posted in Financial Advisors, Financial Planning, financial stress, life settlement
Direct to Consumer Life Settlements.
Mar 2, 2021 6:30:00 AM / by LISA posted in life settlement, Life Insurance Settlement, Direct to Consumer
The life settlement industry has been on a steady rise since the 1980’s, with Conning predicting a 1-2% increase since 2019. The direct to consumer segment of the life settlement industry has also experienced growth during this time as well, with life settlement companies following the retail and travel industries who have operated on this model for years. In this blog, we’ll explain how the method works and who these companies represent.
Top 5 Reasons to Work with a Life Insurance Settlement Professional
Feb 11, 2021 12:15:00 PM / by LISA posted in life settlement, Life Settlement Broker, Direct to Consumer
There are many reasons to work with a life insurance professional and your clients may be asking for more information on the options of working with a specific life insurance professional. How do you provide all the information for your client that is simple and straightforward? This article can help. Let’s go over the top 5 reasons to work with a life insurance professional.
Who Does a Life Settlement Broker Represent?
Jan 29, 2021 9:30:00 AM / by Jon B. Mendelsohn CEO, AsharGroup.com posted in life settlement, Life Settlement Broker
Evaluating Life Settlement Providers
Dec 9, 2020 8:30:00 AM / by LISA posted in life settlement
Evaluating life settlement companies can be a difficult and confusing process. The process of selling an unwanted or unneeded policy is regulated in most states which can add to the headache and confusion. There are several different types of life settlement companies that work with policyholders, but each type plays a different role in the process. Before selling your policy, it is important to understand who you are working with and how to evaluate certain key details involved in the process.
Explaining Life Settlements - What Policyholders Need to Know
Oct 15, 2020 8:30:00 AM / by LISA posted in Life Insurance Settlement
Do you have a life insurance policy that you’re about to let lapse? Are you 65 years or older?
5 Tips for a Successful Life Settlement Negotiation
Sep 16, 2020 1:00:30 PM / by LISA posted in life settlement, Life Insurance Settlement
There are a lot of factors that go into determining the value of a life settlement. However, none are as important as your ability to achieve as much value as possible for your clients through careful and strategic persuasion with prospective buyers. To help you negotiate successfully, here are five useful tips for getting your client the best settlement the market allows.
LISA Endorses H.R. 5958, the “Senior Health Planning Account Act”
Mar 3, 2020 12:00:00 PM / by LISA
Register for the 25th Annual Fall Life Settlement and Compliance Conference
Jul 30, 2019 2:21:00 PM / by LISA
The Life Insurance Settlement Association (LISA) will host its 25th Annual Fall Life Settlement & Compliance Conference, the longest-running professional conference in the life settlement industry, on October 13-15 at the Hilton Nashville Downtown in Nashville, Tenn.
5 Tips for Helping Your Retired Clients Cope with Spending Their Savings
Mar 28, 2019 12:00:00 AM / by Darwin Bayston, CFA
Most baby boomers were raised with an ethic of working hard for their whole lives, saving a little money along the way and hoping they would stash away enough in savings to enjoy their retirement years.
Life Settlements: 5 That Didn't Get Away
Feb 11, 2019 12:00:00 AM / by Robin S. Weinberger
Unfortunately, far too often, policies are lapsed or surrendered without investigating the possibility of a life settlement.Here are five recent cases that optimized the value of policies that otherwise would have been terminated with little or no value:
Half of Older American Households Falling Short of Target Retirement Income
Dec 21, 2018 12:00:00 AM / by LISA
3 Ways AI and Robotic Process Automation Will Improve Life Settlement Transactions
Dec 17, 2018 10:46:00 AM / by John McFarland
The U.S. life insurance industry is beginning to understand the vast potential benefits of robotic process automation (RPA) and artificial intelligence (AI). These two related breakthrough technological innovations leverage the power of machine learning to increase productivity and reduce the risks associated with human error.
24th Annual Fall Life Settlement Conference to Explore industry's World of Opportunities
Aug 28, 2018 11:12:00 AM / by Unknown
ORLANDO, Fla.--(BUSINESS WIRE)--The Life Insurance Settlement Association (LISA) today announced the agenda and featured speakers for LISA’s 24th Annual Fall Life Settlement & Compliance Conference, the longest-running professional conference in the life settlement industry, to be held October 21st-23rd at Disney’s BoardWalk Inn, just outside of Orlando, Fla
Tax Overhaul Gave Clients With Irrevocable Life Trusts Work to Do
Jul 13, 2018 3:22:00 PM / by Robin S. Weinberger and Peter N. Katz
Here are 5 ways that ILIT users can respond to the changes.
The Tax Cuts and Job Act of 2017 (TCJA) doubled the already sizeable estate tax exemption.
Speakers at 8th Annual Life Settlement Institutional Investor Conference Forecast Growth in Asset Class Spurred by Technology Innovations
Feb 28, 2018 3:47:00 PM / by Unknown
The life settlement industry is expected to benefit from favorable demographic trends and technology innovations that will make it easier for consumers to sell their life insurance policies, according to featured speakers today at The Life Insurance Settlement Association (LISA)’s Eighth Annual Life Settlement Institutional Investor Conference.
How the New TCJA Tax Law Affects Life Settlements
Feb 21, 2018 9:11:00 AM / by Robin S. Weinberger, Peter N. Katz
Two pieces of the new tax law, the Tax Cuts and Job Act of 2017 (TCJA), have a significant impact on life settlements: the increased estate tax exemption and the clarification of the income tax treatment for life settlements.
2017 Report on Long-Term Care Includes Life Settlements Among Payment Solutions
Feb 15, 2018 11:25:00 AM / by Jon B. Mendelsohn CEO, AsharGroup.com
A 2017 report by the National Association of Insurance Commissioners (NAIC) Long-Term Care Subgroup includes life settlements among three options for paying for long-term care.
Thawing of Canadian Life Settlement Market – Pro Consumer Developments for Canadian Policyholders - Finally
Feb 14, 2018 3:04:00 PM / by Paul Tyers, President of Life Insurance Liquidity Options Inc.
While Canadian snowbirds are soaking up the sunshine and warmth in the southern US, many can’t help but notice the availability of products in the south which they can’t get in the north.
Talking About Life Policy Value Could Prevent Panic Stock Sales
Feb 14, 2018 12:00:00 AM / by Darwin Bayston, CFA
It’s likely that some of your clients were lulled into a false sense of security with the seemingly endless string of “green” days on Wall Street over the past few years. If so, they were shocked back into reality in the month of February.
Three Steps Toward A Better Retirement In 2018 Did You Know?
Feb 5, 2018 2:45:00 PM / by Darwin Bayston, CFA
For seniors who have already entered retirement, there are some important things that can be done in 2018 to make it better and more fulfilling:
Consumers Pay for Insurance Company Mistakes
Jan 28, 2018 10:05:00 AM / by Dan Young, CLU, ChFC, CASL, Senior Managing Director and General Counsel at Vida Capital
A Wall Street Journal recent article entitled “Millions Bought Insurance to Cover Retirement Health Costs. Now They Face an Awful Choice”, discussed the recent trend of increases in rates for long term care insurance. The article discusses how many people were told that they would have level premiums to cover medical needs in the future. These consumers paid their premiums and kept their end of the bargain, only to be told that the insurance companies did not correctly estimate the costs and the risks.
3 Ways That Life Settlements Can Help You Take Care of Your Family
Jan 19, 2018 10:26:00 AM / by Jon B. Mendelsohn CEO, AsharGroup.com
If you’re like most people, you bought your life insurance policy because you wanted to take care of your family.
3 Facts About Life Settlements That Every Financial Advisor Should Know
Jan 16, 2018 11:03:00 AM / by Jon B. Mendelsohn CEO, AsharGroup.com
Over the past few years, we’ve found that life settlements have gradually been moving more into the mainstream financial world. As we meet with advisors, we find that many more know about this secondary market solution than was true in the past.
How to talk to your clients about the idea of selling their life insurance policies.
Wealth managers and estate planners are becoming more familiar with life settlement transactions, in which your client sells his policy to a third-party investor and receives a cash payout, thereby monetizing the asset immediately. The new owner takes responsibility for paying the premiums and collects the policy’s death benefit when the client passes away.
4 Things to Tell Older Clients About Their Life Insurance
Nov 21, 2017 11:07:00 AM / by Darwin Bayston, CFA
For advisors who work with clients already in retirement, it can be challenging to know exactly what kind of advice to provide seniors when it comes to life insurance.
Information About 23rd Annual Fall Life Settlement Conference
Oct 23, 2017 2:16:00 PM / by Darwin Bayston, CFA
ORLANDO, Fla., Oct. 17, 2017 (GLOBE NEWSWIRE) -- Many American families today are facing financial security challenges and need to know their life insurance policies may be able to be monetized to help them address those financial needs, according to E. Benjamin Nelson, a former two-term U.S. Senator from Nebraska.
The “Senior’s Right to Know” Movement Gains Momentum: What if a Senior No Longer Needs their Life Insurance?
Sep 17, 2017 11:32:00 AM / by Darwin Bayston, CFA
This summer, the State of Florida gave a jolt to the growing “Senior’s Right to Know” movement in America – and all registered financial consultants need to be aware of these latest developments.
As millions of baby boomers continue their mass exodus from the workforce to retirement, they are already coming to grips with the reality that investment returns in the coming years are unlikely to keep pace with those of recent history, as illustrated by the modified projections recently used by Calpers and other major institutional investors. Now comes a new study that adds insult to injury: the principal driving force for these depressed returns is none other than the baby boomer generation itself.
Life Settlements Identified by NAIC Innovation Group as Private Market Option for Financing Long-Term Care Services
Jul 26, 2017 2:13:00 PM / by LISA
CFP Board Proposal to Extend Fiduciary Duty Could Improve Awareness of Life Settlements
Jun 29, 2017 6:09:00 PM / by Wesley Costa Director of Marketing and Education - LISA
This summer, the Certified Financial Planners (CFP) Board is proposing some bold changes to their fiduciary standards. Many of the approximately 77,000 CFPs in the United States could be impacted.
Florida Governor Signs Bill Requiring Consumers Be Advised to Consult with Professional Before Making Changes to Life Insurance Policy
Jun 27, 2017 3:07:00 PM / by Darwin Bayston, CFA
ORLANDO, Fla., June 27, 2017 (GLOBE NEWSWIRE) -- Florida Gov. Rick Scott signed legislation yesterday that contains a key consumer disclosure requirement to protect Florida consumers who are considering making changes to a life insurance policy.
23rd Annual Spring Life Settlement Conference Information
May 23, 2017 11:45:00 AM / by LISA
On the surface, it would appear that individual retirement accounts are a popular choice for Americans, with roughly one in three U.S. households owning at least one IRA. But a study just released by the Center for Retirement Research at Boston College suggests that IRAs may not be working for retirees the way they were intended.
Proposed Tax Bill Would Clarify Tax Treatment of Life Settlements
May 11, 2017 12:34:00 PM / by Robin S. Weinberger, Peter N. Katz
Helping Your Clients Afford a More Expensive Retirement
Apr 26, 2017 1:35:00 PM / by Darwin Bayston, CFA posted in Financial Advisors, life settlement
The sustained low interest rate environment brought on by the financial crisis of the late-2000s has forced financial planners to revisit some of the broad assumptions we’ve made in the past for projecting portfolio returns. A new article in the Journal of Financial Planning, “Planning for a More Expensive Retirement,” takes this anecdotal reality to an empirical level by studying the implications of continued low returns on retirement plans.
Life Settlement Opportunities for Business Life Insurance
Apr 19, 2017 2:21:00 PM / by Robin S. Weinberger and Peter N. Katz
Life settlements are frequently viewed, primarily, as an option for personal life insurance and estate planning policies that are no longer wanted, needed or affordable. However, business-owned policies or personally owned business purpose policies can also make excellent life settlement candidates, yet these policies are often overlooked.
A Life Settlement and Replace Strategy that Remains Viable
Mar 14, 2017 10:44:00 AM / by Robin S. Weinberger and Peter N. Katz posted in Financial Planning, life settlement, Life Insurance
The days of selling a policy in a life settlement and replacing it with a new one are mostly gone, but one variation on that strategy can still work in the right situation.
5 pitfalls to avoid when assisting clients with a life settlement
Mar 7, 2017 3:20:00 PM / by Darwin Bayston, CFA
There is a peculiar paradox in the financial advisory world: Ninety percent of seniors who lapsed a life insurance policy would have considered a life settlement had they been aware of the possibility. Yet 65 percent of financial advisors have never recommended a life settlement to a client, but claim they would do so under the right circumstances.
The life settlement market is heating up
Feb 23, 2017 11:20:00 AM / by Robin S. Weinberger, Peter N. Katz
A number of factors have reignited the life settlement market with both consumers and investors showing rising interest.
LISA-Endorsed Changes to IRS Treatment of Life Settlement Transactions Included in Landmark Tax Bill Passed by Congress
Feb 20, 2017 2:08:00 PM / by LISA
ORLANDO, Fla., Dec. 20, 2017 The 2017 Tax Cuts and Jobs Act, the sweeping tax legislation passed by Congress and expected to be signed into law this week by President Trump, contains an important reform to the way the Internal Revenue Service (IRS) has required calculating the taxable basis for life settlement transactions, a positive development for seniors who own a life insurance policy they no longer need or can afford.
7th Annual Life Settlement Institutional Investor Conference
Jan 25, 2017 12:28:00 PM / by Daryn Teague