Take Advantage of the Life Settlement Upswing

admin | September 3, 2013

Selling your life insurance had become difficult with the barriers that existed. Many seniors find themselves allowing their policies to lapse or they were ready to surrender their policy and accept the low, sometimes insulting value the insurance companies or investors were offering. After paying into a policy for many years, it can be disheartening to be given an offer that only amounts to a small percentage of the amount of money invested in premium payments. This article talks about the positive changes that have hauled the ways life settlements are viewed overall and the value they have to those who want to sell their life insurance.

Now that there is a newly regulated market place to regulate life settlements, seniors are offered a lot more protection when assessing the value and completing the settlement transaction. The changes are now effective in 42 of the 50 United States, which is a huge step of progress and evolution that befits both the seniors who hold these policies, and the investors who may be willing to cash out seniors and invest in these policies for great returns. This protection now ensures that senior will not be taken advantage of, and the transactions will be orderly and fair.

These new measures have restored confidence with investor’s, making them more likely to offer an attractive life settlement offer to seniors that are searching for a buyer. Investors are no longer concerned about the solvency and ability of insurers to pay the fair value of the policies they buy. The 2008 financial crises pretty much halted all new life settlement investments due to cash flow issues. This made it very difficult for seniors to find buyers or borrow against their current policies. Since the overhaul as taken effect, Banks, Hedge Funds, and even Pension Fund Managers are now entering the market place in high numbers to offer settlements, so this may be good time for seniors who are asking “When is a good time to sell my life insurance?”

One of the big problems that prevented investors from offering fair settlement rates was the outdated mortality tables used by insurers. There was a huge difference between the mortality rates listed on the tables used, and the actual life expectancy reports. This disconnect really hurt the ability of seniors to sell their policies since investors were facing so much uncertainty. But, since there the data that investors use to base their buying decisions is not more accurate, investors feel more confident about investing in life settlements. The changes equate to an increase of resale value of the policies, which in turn, means there are more profits available, for both investors and seniors.

The reality is that Life Settlements certainly are a remarkable financial organizing tool. Even so it is vital to comprehend how they perform, the requirements, and if your policy might be sold. Life Settlement Training will continue to increase as a growing number of regulations is met all through the industry. It is important to know that not any life insurance could be offered by using a Life Settlement. Nevertheless, many seniors are now exploring the option of the Life Settlement ahead of lapsing or surrendering a life insurance policy. There is certainly no explanation to not explore a life settlement in case the policy owner is contemplating lapsing or surrendering a policy

Sources:

http://harvestacs.com/Life-Settlements
http://www.lifehealthpro.com/2013/06/25/7-positive-trends-for-life-settlements