The Tipping Point
The Secondary Market for Life Insurance
is Poised to go Mainstream –
Are You Ready?

by Constance M. Buerger
Paradigm shifts don’t occur overnight. Yet, somewhere along the line, there comes a convergence of factors that makes significant change inevitable. With regard to the secondary market for life insurance, this “tipping point” may already be in the rear-view mirror.
     In the past few years, the secondary market for life insurance has exploded onto the financial planning scene. Clearly, the market’s basic premise — the consumer’s right to resell unwanted or unneeded life insurance — has been validated by the U.S. market’s spectacular growth, which is expected to exceed $45 billion in face value by 2007. More importantly, the market and its associated products, such as life settlements

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Life Settlements

updated 1/27/10
New Twist on Life Settlements
AGAP of Texas introduced the AGAP Life Offering, which it calls, a life settlement with a twist. A surety bond is purchased from Gresham Insurance Brokers inc., an authorized Lloyd’s of London broker, committing them to paying the face value of the life insurance policy if the insured lives beyond a pre-determined date. Investors know exactly when their life offering will mature and the rate of return. With each Life Offering investors’ money remains secure until it is returned to them. For more information, call 972-447-0010.

updated 2/25/09
Life Settlement Screening Tool
21st Services is offering screening for life settlement cases. The Customized Longevity Planning Report is based on medical data provided in a questionnaire online at www.21stServices.com or in a phone interview. The electronic version is 80% less expensive than a full evaluation. The broker only has to pay for a full evaluation when highly likely to close a case.

updated 2/18/09
Life Settlement Support
Life Settlement Insights introduced its back-office support program for brokerages and agencies conducting life settlement transactions. The new service offers complete case management, policy marketability analysis, regulatory filing and reporting, an option for E&O coverage for those who qualify, and compliance reviews for all cases. For more information, call 440-498-6301 or e-mail Kevin.Herendeen@lsinsights.com.

updated 2/4/09
Life Settlement Back Office Support
Life Settlement Insights introduced a back office support program designed to provide logistical and operational support to brokerages and agencies conducting life settlement transactions. The new service offers complete case management, policy marketability analysis, regulatory filing and reporting, an option for E&O coverage for those who qualify and compliance reviews for all cases. For more information, call 877-574-4321, ext. 101 for more information.

updated 12/31/08
Life Settlement and Longevity Trade Report
Life-Exchange Inc. launched a bi-monthly life settlement and longevity markets trade report. It features information on the growing life settlement and longevity risk markets. Data includes volume statistics, trade data, yields and other key industry specific data. For more information, visit www.life-exchange.com.

updated 12/17/08
Life Settlement Analysis
Settlement Plus is using a proprietary method to determine economic benefits, tax ramifications, and estate planning rationales for selling, maintaining, replacing, or purchasing additional insurance for estate or business planning needs. For more information, visit www.settlementplus.com.

updated 11/05/08
Life Settlements With Privacy Protection
Advanced Settlements is offering a life settlement funding ensuring full personal and medical redaction. This new platform redacts personal information along the transaction chain to resolve potential concerns regarding insured's privacy. It does the following:

• Compels transaction participants at all levels to comply with, and in many cases exceed, regulatory requirements and best practices.
• Presents qualifying policies to multiple, select high-quality investors to maximize competitive pricing potential.
• Establishes uniform standards in origination, bidding and closure -- attracting high quality, reliable funding sources.
  

For more information, visit: www.advancedsettlements.com/platform.htm

updated 10/01/08
Life Settlement Tracking
Executives at The Lifeline Program created a free-standing tracking services company to meet the growing needs of companies that are managing long term disability or portfolios of insurance policies received through life settlements. Capabilities include the following:

• Expert audit and evaluation services.
• Scheduled contact with policyholders.
• Updating of medical, life expectancy and rate of return data.
• Premium management and payment administration.
• Policy maturity management and death benefit distribution utilizing propriety online and offline systems.

For more information, call 800-252-8720, e-mail at info@track-life.com, or visit www.track-life.com.

updated 10/3/07
Fractional Life Settlements
Life Settlement Exchange (LSX) announced that it is the first independent secondary market provider for fractional life settlement investors. Nearly 17,000 individual investors across the country have purchased life settlements through fractional ownership arrangements. Owning a fractional share of multiple life settlements diversifies and mitigates the risk of unknown life expectancies, creating portfolios with a predictable rate of return, historically in the double digits. Historically, the life settlement industry has been dominated by institutional investors. For more information, visit www.lifesettlement-exchange.com

updated 8/15/07
Life Settlement Classes
Life Settlement University posted its fall class schedule in Atlanta. It includes courses for life settlement novices and those seeking advanced training. For more information, visit www.LifeSettlementUniversity.com.

LIDMA Meeting
The Life Insurance Direct Marketing Meeting Association is holding its fall meeting September 10 to 12 in San Diego. This year's event will feature presentations from top direct response producers and executives on topics, such as the development of e-signatures, e-delivery, and credit card acceptance. For ore information, visit www.lidma.org

(updated 3/15/06)
Voluntary Disability
Principal Financial Group is offering group voluntary short-term and long-term disability insurance. It offers a wide range of disability benefit options so employers can tailor a program to fit their needs while keeping costs down. For more information, visit www.principal.com.

updated (8/05)
Graduated Benefits. Life Settlement Providers, LLC and CMG Surety, LLC, teamed up to provide ?Graduated Life Settlement Benefits.? Eligible life insurance policyholders with a minimum $1 million policy benefit can get a discounted lump sum cash payment for their policy. They can also participate in the policy benefit on a graduated, phased-out basis. Eligible policyholders get a substantial up-front cash lump sum from the sale of their policy, while retaining a portion of their policy benefit with no obligation to pay future premiums. For more information, call 866-509-5534, visit www.LifeSettlementProviders.com,
or e-mail info@lifesp.com.

(update 05/05)
Guide. Advanced Settlements Inc. released of white paper titled, "Marketing Life Settlements to Your Senior Audience." The publication is being promoted to insurance, financial, and legal professionals who want to know how to communicate the value proposition of life settlements to their high net worth senior clients. For more information, call (800) 561-4148 or visit www.advancedsettlements.com

Seminar. Maple Life Financial is hosting life settlement seminar for seniors. The complimentary seminar titled, "Discovering Life Settlements" will be held Thursday, June 9, 2005 at the Four Seasons Biltmore in Santa Barbara , Calif. , from 9:00 am to 11 am . Attendees will receive continental breakfast, information packet, and post-seminar policy review and consultation. For more information, call (877) 777-0635.

(update 04/05)
Finance Group. Tempo Financial Inc. launched its Life Settlement Securitization & Structured Finance Group. The company provides premium financing for life insurance policies, purchases of life insurance in the secondary market for investment and management, and arranges and structures bank financing and hypothecation of Life Settlement portfolios. For more information, call (310) 230-0444 or visit www.tempofinancialinc.com.

(updated 10/26)
Life Insurance Valuation. 1st Life Settlements is offering its ?Life Insurance Valuation Proposal.? The tool introduces clients to life settlements and the concept of fair market value for their life insurance policy. The customizable document can be personalized for the client and practice. For more information, visit http://www.1stlifesettlements.com _____________________________

Selling System. 1st Life Settlements introduced "The Life Settlement Selling System." It shows agents and advisors how to incorporate into their Life settlements practice. The system includes a qualifier to identify top prospects; approach letters to get appointments; and the insurance valuation proposal, which explains the need to obtain a fair market valuation on their life insurance policy. For more information, call (800) 667-0305
www.1 stlifesettlements.com.
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