Posts Tagged ‘life settlement’

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Selecting A Life Settlement Broker

Friday, May 21st, 2010

When considering the sale of your life insurance policy in a life settlement, a life settlement broker is an invaluable resource. Using a professional life settlement broker can have a profound impact on one’s ability to maximize the value during the sale of their life insurance policy. They have access to multiple funding sources, many of which don’t deal directly with the public. In addition, good life settlement brokers can speed up the life settlement transaction by efficiently navigating the long and sometimes confusing process.

As the life settlement industry grew, so did the number of people and companies operating as life settlement brokers. With any new industry such as life settlements, the quality of professionals runs the gamut. Some are well trained life settlement brokers, while others act as occasional brokers when their main focus offers a cross selling opportunity. There are some important considerations to keep in mind when selecting a life settlement broker.

A life settlement broker should focus on life settlements and not sell other products. To be masters of their craft, life settlement brokers must concentrate on life settlements primarily. In addition, when dealing with full time life settlement brokers you can be assured that any conflict of interest relating to selling other products or services is removed.

It is essential that a life settlement broker work with a number of institutional buyers. By creating a competitive pricing environment for a policy, the seller is more likely to get the maximum value the market will bear. Unfortunately, some life settlement brokers only work with one or two buyers and as a result fail to deliver the best sales price available to their clients.

Now all but a handful of states regulate and license life settlement brokers. It is imperative to work with only licensed life settlement brokers. By selecting a licensed broker you can be confident your representative is legally held to high standards of education, training and compliance.

Selling your life insurance policy is an important decision. Equally important is selecting someone to represent you during that sale. By definition, a life settlement broker is a fiduciary to the policy seller and you must have confidence in your representative to fulfill that obligation.

Looking to find the best life settlement broker, then visit www.amritafinancial.com to find the best information on working withlife settlement companies.

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Seniors Turn to Life Settlements For Money

Tuesday, May 11th, 2010

Senior Citizens are looking to life settlements during this uncertain economy. Life settlements are becoming increasingly popular for seniors looking for sources of cash. While largely unknown, life settlements can provide an immediate lump sum for unwanted life insurance policies.

When life insurance is purchased the intent is to gain some kind of financial security if someone dies. Although, if the policy is no longer needed most believe that they have few options for the life insurance policy. Traditionally those options were to turn the policy into the insurance company and get the minimal cash surrender value. Alternatively, the policy holder could stop paying the premiums and allow the policy to lapse.

With the advent of the life settlement market, policy holders now have a 3rd option. A policy holder can sell their life insurance policy in a life settlement for an immediate lump sum payment. The buyers, which are usually banks, hedge funds and other financial institutions, often pay sellers as much as 200%-500% more than the cash surrender value. The buyers take over the premium payments and the policy seller has no further obligation.

Unfortunately, many seniors don’t realize that life insurance policies can be bought and sold by their owner, like any other asset. The right to sell a life insurance policy has even been upheld by the U.S. Supreme Court. In fact, life insurance policies have been sold in the USA dating back to the 1800′s.

The life insurance settlement process is relatively straightforward and easy. Contacting a life settlement broker for a free analysis and consultation is the first step. These licensed professionals can provide an estimated value for a life insurance policy on the secondary market. After completing an application and collecting some documentation, the policy will be offered to a number of prospective buyers for consideration. From there, the policy seller simply chooses the most attractive offer and collects the life settlement proceeds.

Learn more about a life settlement. Stop by Kelly Ramirez’s site where you can find out all about a life settlement broker and what one can do for you.

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Factors Influencing Life Settlement Value of a Life Insurance Policy

Tuesday, May 11th, 2010

Life settlements are becoming a much utilized tool of financial planning and source of retirement income. Inevitably, the first question asked by potential policy sellers is regarding the potential life settlement value of their life insurance. There are a number of things that contribute to the value of a life insurance policy on the secondary market.

The personal information of the insured is one of the most important factors in determining a life insurance policy’s value. Obviously the shorter the insured’s life expectancy, the more the valuable the policy becomes. The insured’s age, overall health, sex and even family history play a role in valuing a policy. These characteristics are evaluated by potential buyers and independent medical appraisers to project a life expectancy.

The type of life insurance policy also plays into the valuation. While, non convertible term policies are not typically sold on the secondary market, Whole Life, Universal and convertible term policies are actively being purchased. Usually the Universal Life policies are the most sought after as they offer flexible payments and sometimes have accumulated cash value which can be used to pay premiums in the future.

Policy owners are also a component to the valuation of a life settlement. If a policy owner has previously declared bankruptcy or been divorced, buyers may devalue a policy. Some potential buyers are concerned that a former spouse or creditor will attempt to claim the life insurance policy. In addition, the value of a policy can be affected by the state of residence of the policy seller. Depending upon the type of life settlement transactional environment a state’s laws create, a policy can be given a premium or receive a discount by buyers.

Something that many people don’t consider as part of the life settlement appraisal process is the overall condition of the life settlement market. Although life settlements are an uncorrelated asset class, the industry is very much affected by economic conditions. The purchasers of life insurance policies on the secondary market are financial institutions. The ability of these organizations to purchase policies depends upon rates or return in other asset classes, liquidity and even current public opinion.

Deciding to sell one’s life insurance is an important decision. The most important part of that decision is understanding how much a policy is worth and taking the steps necessary to maximize its value.

Learn more about a life settlement. Stop by Kelly Ramirez’s site where you can find out the value of your life insurance policy with a life settlement appraisal.

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