A life agreement is a financial transaction in which a policyholder who owns an unnecessary or unwanted life insurance policy sells the policy to a third party for more than the cash value offered by the life insurance company. The buyer becomes the new beneficiary of the policy upon expiration and is responsible for all subsequent premium payments. Life settlements are a major advance as they have opened up a secondary life insurance market in which policyholders can access the fair market value of their policies, rather than accepting the lower cash surrender value. from the issuing life insurance company.

Generally speaking, life settlements are an option for high net worth policyholders 65 and older. Independent estimates report that among this group, 20% of the policies have a market value that exceeds the cash value offered by the operator. And while many policy owners are unfamiliar with life settlements until a financial professional mentions the option, the concept has attracted the attention of high-profile advocates such as Warren Buffett, former US Rep. Bill Gradison, and numerous media, including The Wall Street Journal. , Time Magazine, Business Week and The Economist. A growing number of experts now believe that informing clients about the life settlement offering should fall under the fiduciary duty of a financial advisor.

How does it work

In a life settlement transaction, there is a chain that runs from the seller of the policy to the final buyer of the policy (known as life settlement provider.) Each link in the chain has a different responsibility to facilitate the transaction and ensure that it runs smoothly, while external providers often assist the provider with specialized functions.

Is what we do

Our niche was formed to meet the changing demands of trusted advisors and their clientele, who increasingly take advantage of the burgeoning secondary market for life insurance. The market is flourishing as clients realize the $ 108 billion * of existing policies that have unrealized potential that exceeds their cash surrender values. Advisors maximize these gains for our clients, who are rapidly becoming more sophisticated and knowledgeable about these opportunities. Our directors have more than 75 years of combined insurance and financial planning experience, helping to integrate life arrangements into client’s financial, wealth and / or other goals. All principles maintain NASD securities licenses (current) and offer the services of a broker / dealer to facilitate the settlement of life on variable policies. Variable policies are considered by many to be securities transactions.

This process used by our advisers ensures your client the best possible offer for his policy. This process includes understanding the client’s objective, reviewing alternative solutions (if requested) with their advisers, prequalifying all cases for the probability of a settlement, reviewing each case by internal specialists at risk of deterioration. before it goes to market, and by moving the case forward and offers transparency through the proprietary TOP program.