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.
Life settlements are becoming more and more common, as people realize the potential financial benefits that they can unlock from their unwanted or unneeded life insurance policies. In fact, Americans received almost $848 million in payouts last year from selling their life insurance policies into the life settlement market. That’s money that these policy owners would have lost entirely if they had let their policies lapse and is far greater than policy owners would have received if they had surrendered their policy back to their life insurance company. In fact, on average, policyholders average a payout of 4X more than the cash surrender value in a life settlement.
The low interest rates we’ve been seeing for the past decade have been a double-edged sword—good for financial moves like mortgages—but bad for returns on bonds and other interest-dependent investments. As you assess your investments in this climate, there’s one important scenario that’s easy to overlook: Low interest rates on life policies.
Selling your life insurance policy is both an exciting opportunity and a fairly big decision to make. When you decide that it’s time to sell, it’s a decision that you will need to share with your family. While telling your family about selling your life insurance might seem a bit challenging, there’s no need to worry. You only need to make sure that you approach the topic in the right way. Here are a few helpful tips to consider when telling your family about selling life insurance to ensure the conversation goes smoothly.
Life settlements are a means of selling your life insurance policy that is regulated by individual states. Life settlements can be a great option if you’re no longer in need of your policy and would like to gain the means to pay off hefty bills or simply to set yourself up for future financial stability.
Life settlements are a great option for life insurance policyholders who no longer need them - or simply would like to exchange them for a fair monetary value. If you’re interested in receiving a settlement, it’s very likely that you’d like to receive the maximum payout possible for your policy. In this blog, we’ll define and explain multiple factors that may increase the value of your life settlement.
If you’ve recently received a life insurance settlement or are planning to in the near future, you may be wondering how taxes may impact your proceeds, if they do at all. With the intricacies surrounding U.S. tax law, understanding how taxes and life settlements are related is incredibly important. In this blog, we will teach you everything you need to know about how you may be affected as a beneficiary of a life insurance settlement.