Sentences with phrase «life settlement transactions»

Life settlement transactions are complex and require cooperation of a number of entities.

Life settlement transactions can be handled by either a broker or a provider.

Commissions — depending on your state regulations and business agreements you may be entitled to certain referral fees or commissions for completed life settlement transactions;

And this is in spite of the fact that «Wells Fargo is one of the largest sponsors of Lisa.org which is the Life Insurance Settlement Association; an association that has been in business for 20 years helping seniors get the most out of their life settlement transactions.»

The calculation of the value of a life settlement transaction is essentially a discounted cash flow analysis.

There are several key considerations when selecting a life settlements broker to partner with you and your clients pursue a life settlement transaction.

In this guest post, Lingke Wang — co-founder of Ovid Life, a technology firm aiming to create a centralized transparent marketplace for life settlements transactions — provides a «Financial Advisor's Guide To Life Settlements» with a detailed review of the life settlement industry, what a life settlement provider is and how life settlements operate, and the mechanics of how an investor evaluates a prospective life settlement contract purchase (which is important to understand for any policyowner who might be selling their life insurance policy!).

An advisor's important role in a life settlement transaction is to protect their client.

The sale of a life insurance policy to a third party — for more than the policy's cash surrender value — is known as a life settlement transaction.

In a life settlement transaction, the policy's owner transfers ownership of the policy to the buyer in exchange for an immediate cash payment and, in some instances, a reduced interest in the death benefit for the policy's beneficiaries.

Thus, again, policies with less cash value — and a policyowner who doesn't want to make ongoing premium payments — tend to be the better candidates for creating value in a life settlement transaction.

Should this be the right decision for you, however, the funds that are received from a life settlement transaction can make a big difference in the way that many seniors plan for retirement or other financial needs.

The calculation of the value of a life settlement transaction is essentially a discounted cash flow analysis.

There are several key considerations when selecting a life settlements broker to partner with you and your clients pursue a life settlement transaction.

A life settlement transaction will be most favorable for an insured who has had a significant adverse change in health, such that the policy is likely to pay out as a death benefit sooner rather than later (and thus why the buyer will pay more); the caveat, however, is that in such situations, it's especially appealing to keep the policy for that very reason (as if it's good for the investor, it's good for the original policyowner, too!).

For insurance policies on those who are at least in their 60s (or older), another alternative to consider is a life settlement transaction.

From a tax perspective, the significance of life settlements transactions is that they trigger the «transfer for value» rules, that cause the death benefit to be taxable to the new owner (rather than the usual tax - free treatment for life insurance death benefits under IRC Section 101).

However, because a life settlements transaction itself — the purchase and change in ownership — are not themselves reportable events, the IRS has struggled to track whether buyers of life settlements transactions are properly reporting their taxable death benefits (or not).

In this guest post, Lingke Wang — co-founder of Ovid Life, a technology firm aiming to create a centralized transparent marketplace for life settlements transactions — provides a «Financial Advisor's Guide To Life Settlements» with a detailed review of the life settlement industry, what a life settlement provider is and how life settlements operate, and the mechanics of how an investor evaluates a prospective life settlement contract purchase (which is important to understand for any policyowner who might be selling their life insurance policy!).

Not exact matches

It also suggests that when the redemption price of life insurance nears the life settlement value of a policy, careful consideration needs to be given to determine whether the additional tax burden of selling on the life settlement market justifies the transaction.

A life settlement is a transaction that occurs between a policy owner and an investor.

Transactional Fee — The life settlement industry has a dark past of brokerages charging abnormally large transaction fees before the industry was regulated.

Technically, though, there is a third option to the «keep versus lapse» decision of life insurance: to sell the policy to a third party in a transaction called a «life settlement» to an (institutional) investor who might be willing to pay more than just the policy's cash value (or the $ 0 value that might be available if the coverage just lapses on its own).

If the advisor judges that a life settlement is the right approach, particularly when the client can not afford / manage the ongoing cash flow obligations or otherwise needs the policy value liquidated today, the advisor should help identify a life settlement brokerage partner to guide the client through the transaction.

-- We approach each policy owner with sensitivity, realizing that a life settlement is a financial transaction that is personally felt.

The parties and the entire Collaborative Team work together to accelerate the settlement process and keep your transaction costs down so that you and your spouse can begin rebuilding your lives in your post-divorce reorganized family.

When the transaction is complete, the buyer — or life settlement provider — becomes the new owner of the life insurance policy, pays future premiums and collects the death benefit when the insured dies.

A life settlement is a lawful and regulated transaction under New York State law.

As with all important business transactions, policy owners and insureds must be careful not to be the victim of fraud or to commit fraud in connection with a life settlement.

Investors should understand that life settlements are mortality leveraged transactions.

In April, SEC head Mary Schapiro suggested in a letter to Congress» Special Committee on Aging that life - settlement transactions may soon require SEC registration.

Life settlements, on the other hand, are legitimate transactions if the circumstances of the owner of the policy are right and the transaction is done properly.

This type of transaction is known as a «life settlement,» and investors could be subject to a tax if the death benefit exceeds what they paid for the policy.

Life settlements can be complex financial transactions and are generally conducted on behalf of clients by experienced professional advisors.

It is always best to speak with a member of the Life Insurance Settlement Association to understand how regulation, tax laws and how the transaction requirements differ from state to state.

A similar transaction, called a viatical settlement, is only for those with a terminal illness who expect to live another 24 months or less.

Life settlements can have high transaction costs.

LISA was established in 1994 and has played a key role in developing legislation and regulations as the foundation for an open, transparent and competitive market for the transaction of life settlements.

For most life settlements, there is no mysterious stranger on the other side of the transaction — it's most likely a huge corporation, a large bank or a major hedge fund.

When a consumer sells a policy in a «life settlement» transaction, the policy owner receives a cash payment and the purchaser of the policy assumes all future premium payments — then receives the death benefit upon the death of the insured.

A life settlement is a transaction in which an existing life insurance policy that is no longer needed or is in danger of lapsing is offered for sale to institutional investors in the secondary market.

But with proper due diligence performed on the life settlement broker, the life settlement company and any other entity involved in the transaction, an individual should be able to allay all of these fears.

A «life settlement» transaction is one where the policyowner of a life insurance policy sells the policy to a third party.

Ironically, the biggest caveat of engaging in a life settlement is the reality that any life settlement policy worth selling to an investor is worth even more in the long run for the policyowner to just keep themselves, where the internal rate of return will be even more appealing (since the investor has both transaction costs to acquire the policy, and does not enjoy the death benefit tax free as the original policyowner would).

With these transactions, the life settlement company will actually become the owner and the beneficiary of the policy, once it has been purchased.

However, this is a complex transaction and you should engage with a life settlement broker to help you analyze this option.

In some cases, the accrued loan interest on a life insurance policy is so severe that there's no way to save the situation — necessitating either a surrender of the policy, or perhaps a life settlement sale transaction for an older insured.

Finally, it's worth noting that the economics of a life settlement are really quite similar to that of an annuity (where the company on the other side of the transaction «profits» when the annuitant dies sooner rather than later), where again there are no institutions that issue annuities acting to hasten the demise of an insured.

If the advisor judges that a life settlement is the right approach, particularly when the client can not afford / manage the ongoing cash flow obligations or otherwise needs the policy value liquidated today, the advisor should help identify a life settlement brokerage partner to guide the client through the transaction.

Technically, though, there is a third option to the «keep versus lapse» decision of life insurance: to sell the policy to a third party in a transaction called a «life settlement» to an (institutional) investor who might be willing to pay more than just the policy's cash value (or the $ 0 value that might be available if the coverage just lapses on its own).