How life expectancy affects the settlement market | Life Settlement

There are three to four life expectancy providers who calculate the mortality of policy insureds with their own proprietary methodologies. There are also a few annuity carriers who apply mortality credits for annuitants with impaired risks by age rating up the actual age of the proposed annuitant. While this is just a general assessment, it's a good place to start without submitting the full requirements of a life settlement. Life settlement experts Erez Rotem and Alex Sirotkin of Integrity Life Solutions, LLC, are interviewed by Steve Savant, syndicated financial columnist and talk show host, on this episode of "Let's Get Down to Business."

How laws and regs affect your engagement in the market | Life Settlement

How the life settlement market can impact your practice | Life Settlement

Let's Get Down to Business: How the life settlement market is an option for se...

Let's Get Down to Business: How the life settlement market is an option for se...: It's surprising to note how many permanent policies lapse each year or are deliberately surrendered by policy owners over age 55. Simi...

Let's Get Down to Business: How the life settlement market is an option for se...

Let's Get Down to Business: How the life settlement market is an option for se...: It's surprising to note how many permanent policies lapse each year or are deliberately surrendered by policy owners over age 55. Simi...

Deconstructing the Life Settlement Application - Understanding the life settlement process (part 2)

Last time we left off we discussed the importance of knowing the identity of the insured .
The next pertinant question on the life settlement application is determining who the policy owner is.
The policy owner is the person or entity (ie trust, pension plan, business) that possesses all of the rights to the policy, including the right to sell the policy. 
For the sake of this discussion we are not concerned about the obligation of the policy owner to the beneficiarys and insured, such as the trustees obligation to the trust, but rather why having information about the policy owner is important.
The policy owners situs usually determine which states laws govern the transaction.  Thats why on the application the policy owners address is a critical piece of information.
Almost half of the policies that we review are trust owned life insurance .  In those cases the situs of the trust determines which state laws would apply.
When policies are company owned it is the location of the business that will determine the situs.
Often times when we are working in regulated states we are asked if the situs of the policy owner can moved from one staet to another.
To redomicile a policy to a unregulated state is not only unscrupulous but in certain states it is illegal and carries severe penalitiesl; including criminal prosecution

Please post any questions you have so we can better inform you.

Until next time keep educating yourself because in the words of Sy Sims an educated consumer is our best customer

Viatical Settlements versus Life Settlements – what is the difference?

Examples of important Life Settlement topics covered by CPE Nasba approved seminar presented by Integrity Life Solutions, LLC – “Life Settlements: Introduction and Best Practices”

Viaticum. Definition.  Eucharist given to a dying person; last rites.

As you will learn in a CPE course entitled “Life Settlements: Introduction and Best Practices” (presented by Integrity Life Solutions, LLC, Maplewood, NJ) the life settlement industry sprung from the AIDs crisis in the 1980s and 1990s. A Viatical Settlement is the purchase of a life insurance policy by an investor where the insured of the policy is terminally ill, generally defined as less than a two-year life expectancy. While the IRS does not define a Viatical Settlement, per se, the Code makes a distinction for tax purposes between life insurance settlements on insureds who have a life expectancy of less than two years, and life insurance settlements on insureds with LEs of greater than two years – the former transaction resulting in no taxable gain (as if they had died and the beneficiaries had received the proceeds of the death benefit on the policy.)

Also mentioned in the Free CPE course, is that ironically, many state legislatures have not made this technical distinction between Viatical Settlements and Life Settlements, the latter dealing with non-terminally ill insureds. Many state statutes regulating this area are generically called Viatical Settlement statute, even though they include the regulation of what are technically Life Settlements. Such statutes such as the recent one in New York, may have initially covered true Viatical Settlement cases, and then later were either amended or otherwise changed to include Life Settlement cases. It is important for the practitioner to understand the technical difference and to not be misled by possible misnomers contained even in state laws. (This again will be more fully explained in the Integrity Free CPE webinar or in person seminar.) Perhaps the IRS “got it right” in that the Code does not label the transaction type one or the other, but merely promulgated regulations based upon facts and circumstances.

Life Settlements, which in essence therefore sprung from Viatical Settlements, have also been tainted in some measure by the legacy of the early history of the Viatical industry, which left hundreds or more of investors, investing in excess of perhaps one billion dollars in viatical settlement policies, holding the bag. Mutual Benefits, a Viatical Settlement company based in Florida, was the largest of these failures, selling a projected profit stream on viaticated policies, that never came to fruition, in some measure because AIDs patients refused to die as they was projected. Thus, at once, the macabre and ghoulish nature of Viatical Settlements and later on Life Settlements, joined with the poor reputation earned by the Viatical industry on the investment side. The Life Settlements industry today is no doubt still living this tainted reputation down.
Integrity Life Solutions, LLC offers a free CPE course with No Strings Attached. Our free CPE course is written per NASBA guidelines which approves us to offer a 100 minute free CPE class. This course is designed to save you time and money while you learn and earn free credits.
This 2 credit free CPE and CFP class introduces an overview to the Life Settlement industry. This free CPE course will explain why it is your fiduciary duty as a CPA and CFP to understand and recognize a viable life settlement and to be able to explain it to your clients.

http://www.freecpe.org/   or  www.integritylifesettlements.net or call 973-275-1110

Integrity Life Settlements is a viatical settlement and life settlement broker, located in the New York area in Maplewood NJ. They negotiate the transaction between the seller and the Buyer. Their expertise is in obtaining the highest possible value for your policy from only reputable financial institutions. Integrity Life Settlements is affiliated with other professionals including attorneys, accountants and actuaries who can provide you with independent financial advice. If you prefer, Integrity Life Settlements will work with any of your trusted financial and legal advisors. In either case, a due-diligence will be performed prior to any transaction.

http://www.freecpe.org/ or www.integritylifesettlements.net or call 973-275-1110