Life Settlement and Premium Finance

Life settlement is the process of selling your insurance policies to the life settlement companies. Some of the reasons why people go in for the life settlement are that they may be ill suffering from a disease that is acting as a threat to their life. The person suffering from the disease will be owner of the insurance policy but its maturity may be at a future date so there is no scope that he can liquidate the insurance policies, so here comes the role of the life settlement. Through the life settlement he can claim the money in few days, incase the person is not financially sound then he can improve on his health. Thus the transaction of life settlement allows a person to improve their quality of life; it also caters to the need of the urgent situations.

Incase you are planning to use the proceeds of your policy to compensate for the estate taxes after your death, however incase the tax law change and brings in some of the positive news of lowering your tax burdens. In such a situation there is no need to use the policy for covering your expenses, life settlement transaction will definitely allow you to get the cash flows now and you can use the proceeds so that you can change your life style.

You can even think of the life settlement transaction when the performance of the insurance policy is not up to your expectation then there is full scope of pooling in the assets of your investment on to some other investment. In this situation also life settlements come to your rescue, life settlement do offer you with the facility of instant cash flow so that they you can pool in your resources on to some better investment avenues which also offer you with the better rate of return.

Another reason why people go in for the life settlements are when there are some kind of financial constraints. In these situations the insurance policies always act as a source to liquidate and in such a situation of financial constraints the insurance policies can be liquidated only through the way of life settlements, thus the standard of living of the people can be improved. Some people even resort to this idea of life settlement when they think that they are nearing to their death.

Another situation wherein the life settlement options are considered when the owners of the life insurance policies are not able to pay the insurance premiums, in such cases there are full chances that the life insurance policies will lapse. Hence it is a wise option to go in for the option of life settlement otherwise the entire amount invested in the insurance policy will just pose as a loss in your balance sheet. In such cases life settlement is one of the best choices as you can surrender your policy for a far better cash values
than the value if it lapses. So go for life settlement and stay happy!

Financial crisis in the course of an illness can set a back forth and it ca make the matter only more compound hence it is essential that you use the process of viatical settlements. Through this process of viatical settlement a very sick person would be relieved from all his worries. What he can do is sell the insurance policy at very lump sum money. In the case mentioned above the seller has been benefited by the lump sum amount and on the other hand the buyer would be benefited by the policy benefits on the death of the person. There are a number of provisions that have been laid down by the law so as to ensure that there are no unscrupulous elements that exploit the vulnerable class of elements. The first and the foremost thing which has to be kept in mind is that the life settlement companies must compulsorily be registered and licensed to operate.

The next important thing which has to be remembered is that the contract must be signed by the two parties that is the policy provider and the purchaser of the policy. This simply states that there should be an existence of a written document between the two parties that should state the terms and conditions through which the life settlement providers are providing the compensation package to the seller of the policy. It is also essential that there should be a specification of sale and there should be a transfer of the net deceased benefit or in particular the ownership of the policy to the purchaser of the policy. There will also be a specific mention of the broker or the funding company’s address and its name. In addition to this it is essential that in addition to this the seller must even specify the other benefits that the seller will have from the life settlements. This treatment can be treated in a similar way of transfer or sale of the net death benefit or the ownership to the purchaser of the policy.

Another thing which is to be kept in mind is that the proceeds from the viatical settlements may or may not have tax benefits. Hence it is essential that before signing the agreement the holder of the policy must contact a lawyer who in turn can check out about the probable estate and the rebate conditions.

It is essential that before handing over the policy to the owner a lot of research must go into it. The research can be done by searching a broker or other people from the internet or from your own know how. From the internet there is a lot of scope to get the information in a very comfortable way.

Another important fact which is to be kept in mind is that the people who are suffering from life threatening diseases may note in a position to take he benefit of the life insurance policy hence it is essential that the person goes in for viatical settlements that acts as a sound help to them.

A life insurance settlement is a financial transaction in which life insurance policy owner possess the rights to sell the policy to third party at fair market price for an amount which is more than cash surrender value offered by insurance company. The ownership rights of the policy after selling the insurance policy get transferred to the purchaser and thereby he becomes the beneficiary of the policy thereafter.

The life settlement policy is available only to high-net-worth policy owners of age of 65 years or older. While many of the policy holders are not aware of the life insurance settlement transaction till the financial professional specifies the option of life settlement to them. But a number of experts have agreed to the thought that informing clients about the life insurance settlement policy must be done only under special circumstances and this should be one of the fiduciary duties of financial advisor.

The candidates who would be eligible to enter into the transaction for the life insurance settlement should fulfill the following requirements: Policy holder should be of age 65 years or older, he should possess $50000 as minimum face amount. The insurance policy which is to be sold should have been active for a minimum period of two years, low cash surrender value, and premium should be less than 8% per annum. Further the policy holder should be the owner of either of the following kind’s of insurance policy viz: - universal life policy, term policy, whole life policy, variable policy, survivorship policy, adjustable policy, joint first to die policy.

The transaction of the life insurance settlements are performed by the financial advisors on behalf of the clients. Some of the advisors that have become increasingly a part of the life insurance settlements arena are- accountant, attorney, financial planners, wealth manager, insurance advisor, estate planner, certified senior advisor, and charitable trust officers.

Life insurance provider act as the purchaser in the life insurance settlement transaction and the insurance providers would be responsible for paying the client an amount which is more than the cash surrender value. It is mandatory that the life settlement insurance providers should be licensed in the state where the policy owner resides. There are approximately forty one states that have certain regulations for the sale of policy to third party.

Life settlement brokers act as an intermediary between the policy holder who wishes to sell the insurance policy and the life settlement provider who wishes to purchase the insurance policy. For rendering this service the broker charges a certain percent of commission to sell that policy. In short he acts as an intermediary between the two parties and charges a certain percent of commission.

Financial investor are known as financing entities because they are one who provide capital or finance for life settlement transaction. Life settlement investor uses their own fund to purchase the policy or may raise the fund through wide range of investors. Life settlement provider is also an investor as he uses his own fund to purchase the policy.

Senior settlement is the most popular way where senior citizens could sell not needed life insurance polices. There might be number of reasons on why senior citizen policy holder may desire to sell. The person perhaps no longer be able to maintain up with the premium of policy, or he perhaps desire to free up some amount for any other investments plan. The cash that is received from the senior settlement could be used for many purposes such as pay off remaining dues or hospital bills. This kind of life insurance settlement would be usually less than the death benefit, however more than the cash surrender value. An individual benefit is your most excellent source for switching the life insurance policy into cash today.

Earlier the only method people can cash in retirement coverage was to give at their surrender value. Another way was to let the policy lapse completely. Both the options are unfeasible and meant the policyholder to suffer loss on the settlement policy. Senior settlement permits the insurance policy to be sold at a price higher than the surrender value when it is sold.

Any senior citizen is free to sell their policy to the third party, who would then become liable for further premiums on the insurance policy. Such citizen would then receive cash from their life settlement insurance company. The course of senior settlement is turning to be great popular method to free up cash amount. This cash could be used in many good ways to settle medical expenses or take care after retirement. It might as well be to put towards other insurance policies, which are a more feasible financial option.

Life Settlement should be considered when:

* Life insurance premiums get too high to continue
* Re-assessing your estate planning
* There is a small or big change in your health state
* The policy might be imminent a lapse
* Considering purchasing new health coverage, such as Long Term Care coverage

Additionally there are other conditions to be measured in senior settlement course. The policyholder should be 65 years old. He should further have a life expectancy of less than 15 years, and the insurance must be worth at least 100,000 US dollars. It is also advisable to have some interested buyers when getting senior settlement process. This would gain the seller a benefit in getting the top price for the policy.

You will come across many financial organizations, which focus on senior settlements and could counsel you on the most excellent method to go about a senior settlement. It is part of the procedure of life settlement companies, which deal with the financial set ups of fatally ill patients. With all financial transactions, ensure you gain independent counsel and could find a trustworthy organization. The greatest way to do this is typically through word of mouth referral from relatives or friends.

Bethesda, MD - November 9, 2008 - Integrity capital continues to have access to the best institutional funding partners in the United Sates and Abroad. Our solid industry expertise allows for unique analysis and consideration of any policy including:

-Traditional Life Settlements
-Recourse and Non - Recourse Premium Financed Policies
-Contestable Policies
-Bridge Financing on policies with existing loans
-Rescue Programs on policies facing lapse status
-Small Face Programs for clients who have realistic expectations

Our Newest Program “Term It Around”

Target Client:

56-75 year old with over 24 month term policy with conversion privileges
Younger Clients (Less Than 70) should have been issued at Preferred
Any policy issued less than Standard will not work in the pricing model
Payouts to clients will range from 1-3% of the Face amount
We will be participating as an agent on the conversion with you
We do have a number of Parameters that has made us different from others:

“NO SHOP POLICY” - ICP will not review or bring a case to our funding partners that have been in any way been touched by another broker or funder. In our 8 years in business we have found that partnering with full transparency with our agents is the only way to create the best results. We know there are others that may make claims about there “Special” relationships or “proprietary” funders.

We believe that choosing one excellent broker with a demonstrated and reputable track record is the key component to getting cases with the best offers and the expected results. If you have an existing relationship that you believe meets that requirement we respect that relationship.

About Integrity Capital Partners, LLC

Integrity Capital Partners, LLC, based in Bethesda MD is a leading broker of life settlements and carrier approved premium finance programs. A longstanding Member of LISA as well as NAIFA. Integrity’s Principal, Robert E. Finfer, is also an MDRT “Top of the Table” producer. Integrity Capital Partners, LLC is licensed in 32 states and extends E&O Coverage to all of its clients.

A life settlement simply means the sale of a life insurance policy for a cash settlement in excess of the current cash surrender value. The different myths busting in the life settlement market are as follows:

Life settlement is a security — Life settlement is a secure investment than an insurance policy or fixed annuity.

The client must be terminally ill or senior citizen — For viatical settlements, the client should be a terminally ill person, of any age, who generally has a life expectancy of two years or fewer. For senior life settlements, the client must be seniors who are typically 70 and older with life expectancies as long as 15 years.

Any senior with insurance will qualify — Any senior citizen with insurance policy is qualified for taking life settlement plan. The client, whose family member is a policy holder, is also qualified.

The client must be desperate for cash — The client must be aware of the value of his asset which is the life insurance policy to sell it for an amount greater than its cash-surrender value.

The industry is not regulated – The life settlement industry comprising the Viatical and Life Settlement Association of America (VLSAA) works closely with the National Association of Insurance Commissioners (NAIC). The NAIC encourages states to adopt uniform standards for regulating the life settlement industry. California currently does not regulate life settlement transactions.

Life insurance should never be sold — If the insurer is not in need of the life insurance policy, he may surrender or lapse it. In case of surrender situation, the policy is sold back to the carrier for a predetermined price, whereas in the case of lapse situation, the policy is sold back to the carrier at a zero price. But a life settlement simply allows for recovering fair market value of the policy.

The whole process may seem to be simple but cumbersome and inconvenient — The process itself is benevolent to the client. It requires only filling an application and some supporting documents. The process involves no physical examination, but uses only the existing medical records. But the whole process normally takes six to eight weeks, and it’s hardly a burden considering that the appraisal process is free of charge and could earn the client a significant financial gain.

The return is not worth the effort — Average returns in the industry vary because the market is changing constantly. It is usual to expect returns as much as two to four times of the existing cash surrender value or anywhere from 12% to 33% of the

policy’s face value. The settlement is an additional benefit for the client and is a taxable event. In most instances, any settlement amount in excess of the cash surrender value is taxed at the capital gains rate.

Life settlement industry may be illegal — Some life settlement advisors adopt misleading practices to induce a client to lapse, surrender, or terminate a financial product in order to suggest for a life settlement option for the purpose of generating a commission. These practices are usually illegal and always unethical.

The liability is too great — Any liability lies with the insurance broker/dealer or carrier who prohibits the life settlement advisors from participating in the industry. In addition, disclosure provisions are built into life settlement transactions to ensure that the client’s rights are protected.

Life insurance policy holders who no longer wanted to pay premiums or no longer needed a policy usually let the policy lapse or surrender the policy to the original insurance carrier for the minimal, cash surrender value, But life settlements offer excellent and better options for the insurance holders who no longer wanted to pay premiums or no longer needed a policy. Hence, insurance business is extensively benefited by life settlements.

Life settlements enables policy holders to unlock the money in an insurance policy that is no longer needed or wanted by selling it to a third party for a lump sum of amount. Integrity Capital Partners offers excellent settlement plans for seniors, terminally ill persons, and corporations which no longer needed life insurance policies. It offers Viatical Settlement plan for terminally ill individuals, Senior life Settlement plan for senior citizens, and Key man settlement plan for corporations.

Viatical Settlement offers a unique financial assistance option for chronically or terminally ill individuals who have life insurance. The person insured for Viatical Settlement need not own the life insurance policy but needs to be a victim of a life threatening illness such as Aids, Alzheimer’s, cancer, Heart Disease, Melanoma, Hepatitis C. And the life insurance policy must be owned by a family member or anyone associated with the insured person.

Viatical Settlement benefits you from life insurance and creates a positive belief in you to lead a quality life even if you have a life threatening illness. The main benefit of Viatical Settlement is providing money at the right time when it is needed. Usually terminally ill individuals who apply for a Viatical Settlement sell their life insurance policy to pay their medical and personal bills, go on a dream vacation, enhance their life quality, or just to spend more time with their family.

Senior life Settlement or life insurance settlement offers an excellent financial assistance option for seniors who are over the age of 65 years. Seniors qualify for Senior life Settlement plan if they have a life expectancy of less than 10 years. Senior Life settlement is a settlement plan through which a senior citizen can sell off their life insurance policy to a third party and get a lump sum amount of money in order to deal with their needs. The third party then assumes responsibility for premiums and is entitled to the death benefit of the policy.

Seniors usually who apply for senior settlement sell their life insurance policy when they are in need of money or as they cannot afford the premiums or as they could better invest the money or they no longer want or need a life insurance policy. The main reason for people opting for life settlement is to maximize the value of the asset and generate as much money from a life settlement as possible. Thus, Ideal Life Settlement plan serves as a secure to your retired life.

Key man settlements are specific to corporate owned life insurance. Key man settlement offers a unique financial assistance option for Corporations which no longer needed life insurance policies. Usually Corporations who apply for Key man settlement sell their life insurance policies because the insured key man might have retired and the policy is no longer needed, the loan that required a life insurance policy is paid off, or the corporation has a split dollar policy.