LIFE SETTLEMENTS
A flight to safety
in a time of crisis
For seniors, the life
settlement option
could be a better
move than lapsing or
surrendering a policy.
As we all experience the rapidly unfolding events of the Coronavirus Pandemic, it is important
to remember that insurance and financial advisors are in a unique position to provide
solutions to their clients designed to help them address the immediate and long-term financial
and emotional challenges that lay ahead. There are available solutions to help navigate this
difficult time for both yourself and your clients that you can access now.
Life Settlements are an opportunity to help clients who could be struggling financially
and own a life insurance policy in danger of being abandoned without realizing it could hold
significant life settlement value. Your clients have watched their investments and income take
huge losses. Many are contemplating if they can afford to make the next premium payment
on a life insurance policy or are wondering what assets they can look to for value. For seniors,
the life settlement option could be a better move than lapsing or surrendering a policy, or
liquidating investments or assets in a down market and locking in losses.
More valuable than ever
Life Settlements are a flight to safety as an asset during an economic crisis. As you well
know, life insurance policy death benefits are guaranteed and are not impacted by the current
performance of the stock market — a $100,000 death benefit last month is still $100,000
today and will still be $100,000 next month. Because life insurance policies are uncorrelated
to market and economic conditions, investors value buying life insurance policies as a non-
traditional asset to balance their holdings. Life insurance policies in the secondary market are
more valuable than ever.
Agent opportunities
A financial solution that agents can bring to their clients during a crisis
Chris Orestis, President of LifeCare
Xchange, is a nationally recognized
senior care advocate and expert
in specialty senior-living funding
solutions. Author of two books,
published papers and articles, and a
frequent industry speaker on LTC-Life
Settlement. He can be reached at
[email protected].
The settlement is for a policy their client already owns and has made premium payments
on for years.
There are no fees to do a life settlement — there are no out of pocket costs
When a person settles their policy, the policy owner receives cash which can often be
tax-free and they are no longer responsible for premium payments.
The process can be completed from start to finish in 90 days or less.
The entire life settlement process is conducted remotely and there is no need for in
person meetings at any time.
During a crisis situation, cool heads and clear thinking can make the difference between a
positive or a disastrous outcome. Seniors need to understand that they have options, and they
should not make panic based financial decisions without thinking through their next steps. For
seniors who own life insurance policies, the life settlement option could be a way to take an
asset that they may be about to abandon and turn it into much needed liquidity to help them
get safely through this crisis.
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Perspectives
Q2 2020