A Growing Industry
While most people are still unaware that life settlements exist, the concept has begun to gain traction. The life settlement industry is a multi-billion dollar industry and continues to grow each year. The industry picked up momentum in the early 1980’s due to HIV & AIDS. During this time the term viatical settlement was used when describing the purchase of a life insurance policy from an individual that had HIV and AIDS. The policies were purchased at a much higher strike price because the life expectancy was typically less than 2 years. In some cases depending upon the circumstance, the life expectancy could have been less than 6 months.
During the 1980’s billions of dollars were spent on the purchase of life insurance policies through viaticals. For some people, the money was needed to help pay for their ongoing care and the hopes of extending their life expectancy through the purchase of medications etc. The success of the life settlement industry was thriving in the 1980’s due to viatical settlements.
Today, the life insurance settlement industry is still thriving. The industry is beneficial for all parties involved.
Consider the following:
The investor can make hefty profits by investing their monies into successful institutional funds. These funds will purchase life insurance policies from seniors and the terminally ill. They are interested in purchasing policies from those individuals that have short life expectancies. If a fund is able to invest in the right policies they can generate a handsome profit for both fund managers and their investors.
The seller will benefit from a life settlement because they can receive an immediate infusion of cash when they need it most. The money can be used for medical expenses, long term care, family etc. The seller may also receive a much larger payout than surrendering the policy back to the insurance carrier. If you are considering allowing your policy to lapse because you can no longer pay the premiums, a life settlement is obviously a much better option.
The life settlement industry will continue to grow because it makes sense for all parties involved. As an investor, it’s a sure bet that eventually the investment will pay, as everyone has a life expectancy. For the policy holder, life insurance policies are worth more in the secondary markets.
If you are currently interested in finding out more information on how we can help you obtain the highest value for your life insurance policy, begin by contacting Ideal Settlement s today.
Ideal Settlements will look at all types of life insurance policies including:
- Whole Life Settlement
- Universal Life Settlement
- Variable Life Settlement
- Term Life Settlement
- Survivorship - Joint Survivorship
- Key Man
- Government Issued Policies
- Group Polices
If you have a life insurance policy that is not listed, please contact Ideal to see if we can assist you.
The Importance of Selling a Life Insurance Policy
If you are considering a life settlement, contact Ideal Settlements today. Ideal Settlements provides seniors with more options for the sale of their life insurance policy. With dozens of institutional funds competing for your business, Ideal Settlements will put you in a better position in securing the maximum value for your life insurance policy.
While the economy continues to spiral downward, more seniors are searching for alternative capital sources. Over the last few years investments have taken a turn for the worst. Retirement portfolios have been lost forcing some retirees back to work. For some seniors that have fallen ill, getting back to work may not be an option. Whether you are considering getting back to work or staying retired, a life settlement can be used to help supplement lost investments providing a retiree the money needed to stay retired.
For many seniors it may be essential to secure a life settlement to pay for ongoing health care costs, medical expenses and long term care. A common situation that is reality is the ability to continue to pay for the ongoing costs of a life insurance policy. When a senior is having financial strains it is likely that they may consider a lapse in their policy, hence, losing the death benefit for the beneficiary. When you secure a life settlement or viatical settlement, the policy holder benefits from getting a higher payout than the surrender value while forgoing ongoing premium payments.
If you are considering a life settlement for an unwanted policy, contact Ideal Settlements today. We stand ready to secure you the maximum value for your life insurance policy.
Life Settlement Brokers & Life Settlement Agents
The life settlement industry has become extremely popular over the last several years. While there are more regulations in place it hasn’t deterred new companies from establishing this product in their portfolio. Life settlements can be handled through a variety of different methods. Most people seek life settlement companies that are licensed originators, who may be either agents who represent a particular company or work with multiple brokers or brokers who can represent many companies.
Life settlement agents can be classified as career agents or as independent agents. A career agent works for one life Settlement Company and provides services for only that company. An independent agent works for him or herself and works directly with multiple life settlement brokers. Life settlement agents act as consultants and they become the liaison between the broker and client. Life settlement agents typically qualify their constituents, collect information and contact those brokers that can best service their client. Life agents typically do not have the authority or licenses to do life settlement transactions. While they can implement certain processes and procedures, they typically don’t share in the cost and expense in creating a life settlement transaction. These costs include life expectancy reports, medical records and administrative expenses related to packaging and taking a policy to the secondary market.
A life agent may perform the following tasks:
- Solicit clients that have unwanted or unaffordable life insurance policies
- Work with each client to determine whether the policy can be sold in the secondary market
- Collecting at least the initial information such as policy type, age, contact information
- Providing service to prospects and staying the point of contact throughout the funding process
- Contacting those brokers that will provide the best payouts for their constituents
A life settlement broker does not represent one single institutional buyer. Instead, a broker represents the client. The broker is responsible for evaluating the needs of the client, evaluating policies and values, the ordering of necessary documentation (medical records & life expectancy reports) and sending the package out for bid. The life settlement broker will determine which buyers will provide the highest payout for the client. In addition the life settlement broker is responsible for negotiating with each company to get the highest payout for the life insurance policy.
Life settlement brokers oftentimes count on life settlement agents to bring them prospects. A life settlement broker or life settlement company will work with hundreds or even thousands of agents. A life settlement broker is either licensed within a state or can work directly with a partner that is licensed to do life settlement transactions within a state.
Life settlement agents and brokers are a very important in the growth of the life settlement industry. If you are currently searching for a life settlement, begin by applying online with Ideal Settlements today. If you are a life settlement agent and interested in sending your senior clients to Ideal Settlements, we invite you to contact us today.
For additional information:
Life Insurance: Solution to Economic Uncertainties & Loses
There is no question the importance of life insurance. While most people want to leave something behind for their loved ones, many are forced into selling their policies back to the insurer or converting their policy into a life insurance settlement. The current financial environment has forced some people to consider life settlements to help pay for their immediate long-term care, medical expenses and other related expenses associated in getting old.
To fully understand the purpose of life insurance, it is important to understand the economic value it provides. Life insurance is a tool that is used by millions of people throughout the United States. It provides people the financial security for themselves and those who they provide for. Insurance has evolved as a solution to economic uncertainties and loses. The principle behind life insurance guarantees a beneficiary a sum of money upon the death of the policyholder. Life insurance provides economic certainty and replaces the unknown with a sense of security and peace of mind.
The life insurance industry places a vital role in our economy and in the lives of million Americans. The life insurance industry invests billions of dollars each year and in most cases can be a factor in the stimulation of our economy. There are many types of life insurance companies all that offer different types of life insurance products. Some of the different types of insurers include: stock insurers, mutual insurers, reciprocal insurers, Lloyd’s of London (not an insurance company but a group of individuals and companies), reinsurers, risk retention group, assessment mutual insurers, fraternal benefit societies, home service insurers, government and self-insurers.
These types of insurers differ in both company infrastructure as well as the policies they offer.
When evaluating a life settlement it will be important to note that not all insurance policies can be purchased in the secondary markets. It will depend upon the type of policy, life expectancy of the policyholder and the rating of the insurer.
Some of the different types of policies which can be purchased in the secondary market include:
- Whole Life Settlement
- Universal Life Settlement
- Variable Life Settlement
- Term Life Settlement
- Survivorship - Joint Survivorship
- Key Man
- Government Issued Policies
- Group Polices
If you are currently searching for a senior life settlement or viatical settlement, contact Ideal Settlements today.
Selecting a Life Settlement Company
Perhaps one of the most important steps in the life insurance settlement process is choosing the right company to assist you. Life settlement transactions can be very complicated at times and selecting a company that has experience in handling life settlements can result in a larger payout to the client. It is important that if you decide to sell your life insurance policy you work with a company that puts your financial interests ahead of their own. If you are searching for an expert in the life settlement industry, contact Ideal Settlements today.
Due to the adverse state legislation, lengthen life expectancies and a lower volume of life settlement transactions within the open markets, it will be important for you to select a company that has experience in handling life settlements. Ideal Settlements prides itself in offering seniors a great option of getting larger returns for unwanted life insurance policies. We are a company that understands and has experience in working within the secondary markets assuring our customers they are being represented by professionals.
When hiring a company that has little experience within the industry, it can result in delays, denials and/or much less money to the policyholder. At Ideal we are committed to streamlining the life settlement process giving our clients the best chance of a larger payout in shortest period of time.
Streamlining the life settlement process is an important factor for those individuals that have a pressing financial obligation or is terminally ill. At Ideal Settlements we are obligated to each client to evaluate an applicant and provide them with the best chances of obtaining a life settlement in the shortest period of time. Part of streamlining the life settlement process includes an initial consultation with the policyholder, financial representative or beneficiary. During the initial consultation we will pre qualify the applicant based upon several different factors.
Once we’ve identified that a policy is worth money in the secondary markets we will begin aggresively packaging your policy for the open markets.
Below is a sample schedule:
Week 1-3 – Order documentation and request records
The process time varies depending on how long it takes for your doctors and insurance company to complete our requests. We also at no cost to the client order life expectancy reports which are viewed during the underwriting process of the policy.
Week 3-5 – Negotiations with Institutional buyers
Ideal will negotiate with all the applicable institutional buyers or investors to obtain the highest offer available. After negotiating the highest possible offer, we present the offer to the client. If the client accepts the offer we will present them with closing Documents.
Payment of Settlement
The funding institution receives written verification of policy transfer from the insurance carrier. Once the process is complete settlement funds are released within 24-72 hours. This can vary depending how long it takes for you to send back closing papers and your insurance company to confirm the transfer of policy ownership.
If you are searching for a life settlement company that provides the services needed to secure a transaction, contact Ideal Settlement today. For additional information on streamlining the life settlement process or information on a life settlement, contact Ideal today.
Life Settlement Option
If you have a life insurance policy that you can no longer afford there are options. A life insurance policy is a valuable asset and whether you surrender the policy or consider a life settlement, both options are better than dropping the policy altogether. If a policyholder can no longer pay the ongoing premiums of a policy the first option may be to have the beneficiary of the policy pay the premiums.
If this is not financially feasible another option would be to surrender the policy back to the insurance company. While surrendering the policy back to the insurer will generally provide a fraction of a life settlement, if the insurance company has a poor rating it may be your only option. Prior to a cash surrender it would be beneficial to investigate a life settlement.
Prior to the life settlement industry, insurance companies had the final say on the value of your policy; meaning if you no longer could afford to pay the premiums they determined the value of the policy. Today a life insurance policy has become much more valuable due to the life settlement market. A life insurance policy is a much more valuable asset and can be sold in the secondary markets for much more than the cash surrender.
While a life settlement provides less than the death benefit (face value) it will provide you more than the cash surrender. In order to review the value of your policy you will need to contact a life settlement company. A life settlement company should be able to quickly determine an estimated value of your life insurance policy even before taking it to the open market.
When a company or broker takes your policy to the open market they will be presenting a policy to investors. These investors buy existing life insurance policies in hopes of a profit after the policyholder passes. The amount of money an investor will offer will be based on the life expectancy of the policyholder. Generally speaking, the older a policyholder the less the life expectancy, the more investors will pay for the policy on the open markets.
There are some policies (depending upon the life expectancy) that are worth 4-5 times the cash surrender value of a policy. In most cases investors are attracted to policies deemed as viaticals. Viatical settlements are typically those transactions that are purchased from policyholders that have a life expectancy of 2 years or less or terminally ill.
Life insurance settlements can be a valuable tool to those people that can no longer afford or unwilling to pay the ongoing premiums of a policy. If you are considering a senior life settlement, contact Ideal Settlements today.
For additional information on a life settlement in your state contact Ideal Settlements today: Alabama, Alaska, Arizona, Arkansas, California, Colorado, Connecticut, Delaware, Florida, Georgia, Hawaii, Idaho, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maine, Maryland, Massachusetts, Michigan, Minnesota, Mississippi, Missouri, Montana, Nebraska, Nevada, New Hampshire, New Jersey, New Mexico, New York, North Carolina, North Dakota, Ohio, Oklahoma, Oregon, Pennsylvania, Rhode Island, South Carolina, South Dakota, Tennessee, Texas, Utah, Vermont, Virginia, Washington, West Virginia, Wisconsin, Wyoming and the District of Columbia D.C.
Life Insurance Ratings & Life Settlements
When determining the value of a life insurance product in the life settlement industry, a company will be interested in the financial ratings of the insurance company that issued the policy. The financial health of the insurer when deciding the value of the life insurance policy is extremely important.
If the owner of a life insurance policy is holding a product from a company with a less than average rating, the likelihood of life settlement transaction decreases. Prior to the life settlement process a company or broker will evaluate the life insurance company through one of the major insurance rating agencies.
If you are interested in looking at the financial rating of your life insurance company we recommend the following companies:
- A.M. Best Company
- Standard & Poor’s
- Weiss Research
- Duff and Phelps
- Moody’s
The companies listed above compile data used to rate the financial strengths of insurance companies. If you decide to look up the financial stability of a life insurance company it is recommended that you use more than one agency. Each agency has their own rating standards therefore their ratings may be different.
The financial health of a company is important to an institutional buyer because without financial stability there is a risk the company won’t pay the death benefit once the policyholder dies. A poor rating may also affect the amount of money offered for a policy in the secondary market. If a policyholder is holding a policy that can’t be purchased on the secondary market, they may have the option of surrendering the policy back to the insurer.
If you are searching for a life settlement or viatical settlement and have questions about the rating of your life insurance company, contact Ideal Settlements today.
Mutual & Stock Insurance Companies
There is little question that the life insurance industry plays an important role in the lives of people every day. Life insurance companies provide protection to millions of Americans throughout the United States. They provide financial security to families and businesses while contributing to the growth of our economy. While life insurance companies provide an integral part of growing economy they also serve as one of the most profitable industries in America. There are several different types of life insurance companies. Each life insurance company may differ in the way the company is set-up and the policies they offer.
The two basic types of life insurance companies include:
- Mutual Insurance Company
- Stock insurance Company
A Mutual Insurance Company is organized under state laws. Mutual insurance companies are owned by the policy holders. This means any person that decides to purchase a life insurance policy through a mutual insurance company will be a customer and an owner. If you purchase a life insurance policy through a mutual insurance company you will share in the company’s earnings.
A Stock Insurance Company is a private company, organized under state laws. The main purpose of a stock insurance company is to make a profit for their stockholders. A stock insurance company is structured like any other private corporation that offers stock to shareholders. Unlike a Mutual Insurance Company, a Stock Insurance company’s policyholder may or may not be policyholders.
A stock insurance company may be converted into a mutual insurance company and vice-versa.
When a client decides to secure a life settlement it makes no difference on the type of company they purchased their life insurance policy from. Ideal Settlements can provide life insurance settlements for clients that have purchased their policies from either mutual companies or stock companies.
If you are considering a senior life settlement or viatical settlement, contact Ideal Settlements today.
If you have additional questions regarding a life settlement in the following states, please contact Ideal Settlements today: Alabama, Alaska, Arizona, Arkansas, California, Colorado, Connecticut, Delaware, Florida, Georgia, Hawaii, Idaho, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maine, Maryland, Massachusetts, Michigan, Minnesota, Mississippi, Missouri, Montana, Nebraska, Nevada, New Hampshire, New Jersey, New Mexico, New York, North Carolina, North Dakota, Ohio, Oklahoma, Oregon, Pennsylvania, Rhode Island, South Carolina, South Dakota, Tennessee, Texas, Utah, Vermont, Virginia, Washington, West Virginia, Wisconsin, Wyoming and the District of Columbia D.C.
The Life Settlement Option
Seniors should consider life settlements when giving the option of lapsing a policy or surrendering it back to the insurance carrier. Due to life changing circumstances the reason to sell your policy may outweigh keeping the life insurance policy.
While there are options available letting your policy lapse and losing the death benefit should not be one of those options. While the life settlement industry is still at its infancy, life settlements are a much more viable option over a lapse policy. The life settlement industry is made up of dozens of institutional buyers willing to pay a handsome sum of money for a policy. The investor will purchase the policy and continue paying the premiums until the policyholder passes. Once the policyholder passes, the investor will receive the death benefits.
The money that can be gained through a life settlement is often used for medical and living expenses. However, due to current economic conditions seniors are cashing in their policies to help out their kids or grandchildren. Many seniors may elect to use the money to help with college while others may designate the proceeds to a charity. Regardless of how you plan on using the proceeds a life settlement can be a financial stop gap in the lives of your loved ones.
If you no longer wish to pay the premiums on a large insurance policy but still would like some insurance, there are alternative options. The cash value of your policy can be used to purchase a term policy or with a smaller death benefit making it more affordable and cost effective for the insured.
A life settlement is generally utilized by those seniors sixty five years of age or older, unless you are terminally ill. They are mainly used by those seniors that can no longer afford paying premiums on their current policy or the insurance policy is no longer needed. In some cases life settlements can provide over 50% of the face value which is often 4X5 times the surrender value of the policy.
When making a decision on a life settlement company, only consider those companies willing to take your policy to more than one investment company. By having your policy shopped in the secondary market by multiple investment companies it can be the difference of thousands of dollars and more.
Some of the different types of policies we consider include:
- Whole Life Settlement
- Universal Life Settlement
- Variable Life Settlement
- Term Life Settlement
- Survivorship
- Key Man
- Government Issued Policies
- Group Polices
If you are currently searching for a company that can provide you with a senior life settlement, contact Ideal Settlement today.
Viatical Life Settlement
While a viatical life settlement is similar to that of a senior life settlement there are certainly differences. When a senior has an unwanted life insurance policy they may have an opportunity to sell their policy in the secondary market. The secondary market consist of hedge funds, investment institutions and banks. These investors are willing to purchase these policies in hopes of reaping significant profits after the policyholder passes.
Viatical Life Settlement vs. senior life settlement
A viatical or viatical life settlement typically has to do with the health condition of the policyholder. When a person is terminally ill and has a life expectancy of 2 years or less we consider this a viatical life settlement. A life expectancy of 2 years or more is generally considered a senior life settlement.
A viatical life settlement will generally provide a higher buyout than a senior life settlement. When a company evaluates the health condition of the insured they will determine the value based upon the persons health condition or life expectancy. If a person has a much lower life expectancy the policy will generally be worth more money. If the policyholder has a longer life expectancy, generally the policy will be worth less.
If you are currently searching for a viatical life settlement company or broker consider experience, services and reputation. It is important that you hire a company that is familiar with the industry and has a network of institutions in which they can obtain the highest payout for your life insurance policy. If you are currently searching for a company that can provide you the highest payout for your life insurance policy, consider Ideal Settlements. Ideal Settlements will provide you with client centric services throughout the funding process. Furthermore, we always put the financial interests of our clients ahead of our own.
For additional information on viatical settlements, contact us today.