Sentences with phrase «life settlement transaction»

Many policy owners who consider selling their policies through life settlement transactions are uneasy about the idea of a life settlement company essentially waiting for them to die.

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).

Meanwhile, a report from the AAP Life Settlement Market Update indicated that internal rates of return for life settlement transactions conducted in 2013 were in the high - teens - an attractive return at a time when fixed income and other hedge positions were delivering minimal rates of return.

According to The Deal Pipeline, total life settlement transactions grew to $ 2.57 billion (face value) in 2013.

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

Wealth managers and estate planners are becoming more familiar with life settlement transactions, in which your client sells his policy to a third - party investor and receives a cash payout, thereby monetizing the asset immediately.

There are life settlement brokers which facilitate a life settlement transaction of the policies between the seller of a policy and a buyer, and life settlement providers are companies that buy policies (via a broker or directly from the policyowner), either to hold themselves, resell to an institutional investor that buys life settlement investments, or even engage in a life settlements securitization process to repackage across multiple institutions investing in life settlements.

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.

We also recommend that you seek help from an unbiased advisor before you commit to any viatical / life settlement transactions.

You should, for example, always seek the advice of an unbiased financial expert before you commit to any viatical / life settlement transactions.

In fact, the amount of money people usually get for a life settlement transaction is about two to five times the cash value of the policy, so you did pretty good by me.

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

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.

For the vast majority of states, a life settlement transaction is regulated by each state's Department of Insurance, which typically requires the buyer (i.e. life settlement provider) of the life insurance policy to be licensed by that state.

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

One option you may want to consider if your life insurance policy is no longer serving its purpose is to sell the policy to a third party in a life settlement transaction.

There are many advantages to selling your life insurance policy via a life settlement transaction — especially if you no longer want or need the coverage.

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.

Nonetheless, for those who just don't want the cash flow obligation of maintaining the policy given a substantial loan, and are at least in their 60s with some health conditions (which improves the price of the transaction), getting full value from a third - party buyer in a life settlement transaction is a better way to «rescue» the policy's remaining value than simply surrendering it to the insurance company for its cash surrender value.

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).

This is not true when life insurance has been sold or transferred to another person for value (such as in a Life Settlement transaction), where profit is the motive.