Life Settlements News, Information and Guidance

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Your Life Settlement Offer: What Goes Into Your Cash Payout

A life settlement is the sale of an insured’s life insurance policy to an investor. The insured receives a large upfront cash payment in exchange for transferring ownership of the life insurance policy to an institutional investor. The investor then continues to make the annual premium payments, and when the insured passes away, the investor…

Life Doesn’t Have to Be So Complicated

BuisnessWire, September 3rd, 2010 This week an insurance research firm reported that ownership in life insurance has reached a 50-year low, with nearly a third of U.S. households not having a form of this financial protection. This decline exposes working Americans to financial uncertainty. “Life insurance is one of the building blocks of a solid financial…

Life Insurers Profit as Retirees Fear Outliving Cash

Bloomberg, August 13th, 2009 Sales of so-called immediate annuities are climbing as retirees are drawn to lifetime payments guaranteed by U.S. insurance companies. Immediate annuities pay a periodic fixed amount of money for life in exchange for a lump-sum payment. New York Life Insurance Co., the largest policyholder-owned U.S. life insurer, reported an 80 percent…

Investing in a sure thing: Life insurance

Arizona Republic, July 26th, 2009 Selling life-insurance policies on the secondary market is an increasingly popular way for investors to capitalize on one of life’s surest events: death. Investors, including some major players on Wall Street, buy the policies in bunches, pay the premiums and collect millions upon the death of the insured. First introduced…

Who Is Paying for Your Long-Term Care?

Senior Spectrum Online, January 15th, 2007 Many Americans assume that Medi-care, supplemental policies or standard health insurance policies will cover their long-term care expenses — an assumption that often leads to severe financial hardship down the road. Many people do not plan ahead financially to provide for their care in the event of frail health….

An Innsurance Man Builds a Lively Business in Death

The Wall Street Journal, November 26th, 2007 Alan Buerger wants to show investors the upside of death. The former insurance salesman runs Coventry First LLC, which lets investors essentially bet on — and profit from — other people’s demise. His company is in the business of buying rights to life-insurance policies. In an arrangement known…

Life settlement fund surges

Investor Daily, August 20th, 2007 Australia’s first life settlement fund has rocketed in the past four months to become one of the largest of its type in the world with funds under management (FUM) of half a billion dollars. The Life Settlements Wholesale Fund (LSWF), launched in October 2004, has grown from $142.9 million FUM…

Life Insurance on the Line

Marketplace, August 3rd, 2007 Lisa Napoli: A few weeks ago, a pair of Irish hedge funds filed for bankruptcy after some risky investments went south. Ritchie Capital had invested in what are called “life settlement policies.” That’s basically where investors buy life insurance policies and profit when the original policyholders die. As Marketplace’s Amy Scott…

Who’s cashing in your chips?

The New York Daily News,  July 30th, 2007 Someone out there wants to place a bet on when you’re going to die – and they’re willing to hand you a chunk of cash now, while you’re still alive. This fast-growing business allows seniors to raise quick cash by selling their life insurance policies. Years ago,…

Basics of life settlements that seniors should know

The Ft. Collins Coloradoan, February 25th, 2006 Viatical settlements gained popularity in the 1980s as a source of cash for terminally ill life insurance policyholders. In the 1990s, viatical settlements gave rise to life settlements. Life settlements are for owners of life insurance policies who no longer need life insurance. The target group for life…