About Brokers

Life settlements can be a viable option for seniors willing to exchange their life insurance policy for immediate cash. A life settlement is the sale of an existing life insurance policy for a lump sum of money. It allows policyholders to access the fair market value of their life insurance by selling their policies and receiving payments greater than the cash surrender value.

Business Brokerage Technically, a life settlement contract allows you to sell your insurance policy to a third party in exchange for a reduced amount of the face value. This is possible because a life insurance policy is actually property, like a car, house, stocks and bonds that can be legally sold. A life settlement essentially lets you extract value today from an asset that is generally thought to only have a benefit when you die. Typically, life settlement transactions involve life insurance policies of a large face amount; "key-person" coverage or corporate-owned life insurance; or policies representing excess coverage that is no longer needed.

Settlement Options Choices available to the policyowner or the beneficiary of a term life insurance policy regarding the method by which the insurer will pay policy proceeds. Also known as optional modes of settlement. See also fixed amount option, fixed period option, interest option, joint and survivorship option, life income option, life income option with period certain, and life income option with refund.

Forex Broker Here's how a life settlement works: When a life settlement company buys your life insurance policy, it pays you a percentage of the policy's face value. Then the life settlement company becomes the new beneficiary of the policy at maturation. As such, it is responsible for all paying all future premiums and collects the entire death benefit when the insured dies.

Life Income Option With Refund A type of life income settlement option in which the insurer guarantees that if the beneficiary dies before the total amount paid under the option equals the proceeds of the policy, then the insurer will pay the difference to a contingent payee. Also called a refund life income option. See also cash refund option, installment refund option, and settlement options.

Online Brokerage A Growing Industry
With a life settlement, you can receive a large sum of cash in exchange for your insurance policy while you're still alive. This eliminates premium payments, accommodates the changing needs of your dependents and provides greater financial flexibility.

Life Income Option With Period Certain A term life insurance settlement option in which the insurer guarantees to pay the beneficiary a series of equal payments for a designated period, such as 10 years; thereafter, the payments will continue only as long as the original beneficiary lives. If the original beneficiary dies during the guaranteed period, payments will be made to a recipient designated by the original beneficiary until the end of the guaranteed period, at which time all payments will stop.

Real Estate Broker Life settlements can also be used for charitable giving. Complex estate and tax planning strategies can apply when using life settlements in a planned giving program. But here's how this works in simplest terms: You donate your life insurance policy to a charitable organization, which immediately sells the policy for a lump sum of cash via a life settlement.

Debt Settlement Leads Member Login Debt Settlement Leads, Debt Negotiation & Credit Counseling Leads If you're tired of dealing with dishonest lead brokers who can't tell you where their leads are coming from, how old they are, or who's hands they've been in, eliminate those headaches by working with a company who generates their own leads. >

Agency Brokerage Spark These and other benefits are making life settlements an attractive option for seniors with unwanted/unneeded insurance policies. Consequently, the life settlement industry has seen significant growth in recent years. A study by Conning & Co. Research found that senior citizens owned approximately $500 billion worth of life insurance in 2003, of which $100 billion was owned by seniors eligible for life settlements. Since 2003, more and more of these eligible senior clients have sold their policies and helped the market increase.

The Department of Military and Veterans Affairs administers a variety of programs to assist veterans and their families. Viatical Settlements Viatical settlements refer to situations where an individual sells the benefits of their life insurance policy to a third party at a discount in order to get cash to pay for costly health care services. Viatical settlement companies may pay 60 percent of the face value of a policy to a person with a life expectancy of two years or less or as much as 80 percent to an individual with a life expectancy of six months or less. The industry generally uses the term "Viatical Settlement" ill insured and a "Life Settlement" to refer to a transaction involving an insured who is not terminally or chronically ill, generally over the age of 65.

Business Broker Separate research by the University of Pennysylvania's business school found that life settlement providers paid approximately $340 million to consumers for their underperforming life insurance policies, an opportunity that was not available to them just a few years before. "We estimate that life settlements, alone, generate surplus benefits in excess of $240 million annually for life insurance policyholders who have exercised their option to sell their policies at a competitive rate," according to the research.

Brokerage Account Selling Your Policy
You could be a prime candidate if you are of retirement age, have paid off your mortgage and other debts, and no longer require the financial protection of life insurance. The amount you receive will depend on your age, health, death benefit, and the number of years your policy has been in force.

Stock Broker Seniors with the greatest chance of selling their policies are those that are older than 65 years of age, have a calculated life expectancy of more than two years (but less than 10 years) and may have experienced a health change that has led to their insurance premiums increasing. Depending on the policy holder's life expectancy, just about any type of policy can be sold, including universal life, whole life and convertible term contracts. However, policies generally must be valued at least $100,000.

Brokerage Online Stock Trading Determining whether to sell your life insurance policy is a purely personal decision. You might consider a life settlement under the following circumstances:

Broker Justin Ticket . Your employment status has changed.

Real Estate Brokerage . You need additional funds to pay medical/long-term care expenses.

Commodity Broker . Your insurance premiums are too expensive and you can no longer afford them.

Brokerage House . You would like to implement a charitable or family gifting plan.

Real Estate Broker Exam . You are facing bankruptcy.

Brokerage Services Consulting with an Advisor
Before you decide to sell your insurance policy, you should examine all the available options, advises the American Council of Life Insurers, a Washington D.C.- based trade group. And instead of going it alone, consult with a financial advisor who is familiar with life settlements. This could include account/CPA, lawyer (especially elder law attorney), financial/estate planner, certified senior advisor or charitable trust officers.

Broker Live Ticket Additionally, you might consider working with a broker-although your financial advisor can submit your case to the life settlement company directly. However, in an industry where market value for life insurance policies may be unfamiliar, brokers typically do the best job of getting fair market value for policies. They submit life settlement cases and bids to multiple companies, which can facilitate negotiations between high bidders.

Online Brokerage Firm Keep in mind that life settlement companies are essentially investors that fund many transactions each year. They hold purchased policies as portfolio assets, rather than making them available to outside investors. They also have in-house compliance departments to carefully review transactions, and they are backed by institutional funds from a major bank.

Security Broker Dealer Steps to Life Settlement Transactions
Wondering what happens during life settlement transactions? Here are the steps involved in the typical transaction:

Coldwell Banker Residential . Step 1: You consult with an advisor and decide to sell your policy.

Freight Broker . Step 2: You and your advisor select a broker.

Freight Brokerage . Step 3: The broker submits your case (and you provide a release for your medical information) to various companies.

Broker Lie Ticket . Step 4: If your policy is eligible for a life settlement, providers send offers to the broker.

4th Boost Brokerage By . Step 5: You accept an offer and then complete the company's closing package.

Florida Mortgage Broker . Step 6: The life settlement company places a cash payment in escrow and submits change of ownership forms to the insurance carrier.

Insurance Brokerage . Step 7: Once the paperwork is verified, the funds are transferred to you.

Online Broker David Springer is a consultant for Sovereign Funding Group. Sovereign Funding Group is an experienced, reputable company that offers convenient, no-risk services to help you with the selling of your deferred payments and business financing, including life settlements.

Brokerage Company

[ Comment, Edit or Article Submission ]