Senior Life Settlements- A New Financial Dawn Emerges

When delving deeper into the market-driven research on the myriads of reasons, motivations, and/or rationales for senior life settlements - seniors selling their life insurance policies have surfaced in recent years. According to studies by key industry players, policyholder rationales for selling life policies are to be identified on one of three levels, due to a combination of them OR influencers from all three levels working together to result in senior life settlement transactions:

Individual: cash-need for major expenses, outlived need for coverage, needing different coverage or features, financial distress

Family / Estate: Change in beneficiaries (e.g., divorce, death of dependents), Second-to-die policyholder (i.e., spouse) has passed away, material change in the value of estate

Business: Change in key executives / partners, change in succession plan (e.g., family business) or needing cash / seeking to monetize assets

(Source: Bernstein Research Call, Sanford C. Bernstein & Co., LLC, a subsidiary of Alliance Capital Management, 2005)

Other sources (Milestone Settlements, 2004) confirm that senior life settlements appeal as solutions to individuals most likely to consider a life settlement, because they, for one reason or another, no longer need the insurance they purchased. A number of reasons may include:

* Seniors whom have insurance and/or estate needs that have changed, making their current policy(s) inadequate or exceedingly adequate for their current or future needs

* Seniors who are not satisfied with the performance of the insurance product(s) they have chosen, or are aware of newer, better performing insurance products

* Seniors who choose to realize the value of their policy(s) now, rather than continuing to pay on a policy they will never receive the benefits of

* Individuals, or owners of a company, who own key man policies that are no longer needed, or elect to use the sale of the policy(s) to enhance a buy-out or create severance packages

* Seniors who wish to live out the remaining years of life without a change in lifestyle

* Individuals who need capital to pay for medical treatments or procedures

* Any senior who realizes that there is now a greater tangible asset value to their life insurance policy, and wishes to take advantage of this added value

A cautionary note seems appropriate here. Senior Life Settlements is definitely not territory to approach without the advice and assistance, counsel and due diligence of a well-versed, experienced player in this secondary market. A financial advisor with exposure and experience could advise you and assist you in become aware of any tax liabilities you may face should you sell your policy. Most times a life settlement is taxed on the income above and beyond the basis (what you've paid into your policy to date) of your policy. Each senior life settlement case is different and if seems prudent to have a consultation with a tax advisor or your financial planner prior to proceeding down the path of Senior Life Settlements.

Peachtree Life Settlements
Life Settlement Experts

Jon Thomas has been involved in finance and insurance, specializing in emerging growth markets since 1979. He continues to write articles concerning the public and their pressing financial concerns.

---

The Life Insurance Policy and Its Best Kept Secret

Do you love someone deeply enough to spend your hard earned dollars on a life insurance premium -- month after month?After all, the benefit from a life... Read More

5 Steps To Cheap Car Insurance Premiums

Although car insurance is compulsory, it's not necessary to pay more than you have to. A few simple steps combined with some time surfing for competitive car... Read More

Life Insurance: Who Needs It And How Much Do You Need?

Your friendly, neighborhood life insurance agent is most likely to answer this question with the word "everybody."The fact is, not everybody does need life insurance. If you... Read More

How Many Homeowner Insurance Quotes Do I Need To Save Money?

Homeowner insurance quotes can vary in the amount they cost you based on a variety of factors ? many that you can control. There are of course... Read More

Auto Insurance Primer

What is auto insurance? Auto insurance (or car insurance, motor insurance) is insurance consumers can purchase for cars, trucks, and other vehicles. Its primary use is to... Read More

Cheap Car Insurance ? 7 Tips To Reduce Your Car Insurance Costs

With the cost of car insurance becoming more and more of an issue for the average American family, there are increasing numbers of people looking for cheap... Read More

Protecting Your Expatriate Family

If you and your family relocate overseas, one of your first priorities from a financial planning point of view may very well be establishing health care.Costs and... Read More

How To Get Cheap Whole Life Insurance Quotes

Whole life insurance quotes the most expensive kind of policies that are on the market due the fact of cash value over time. Whole life insurance is... Read More

The Immorality of Guarantee Issue Health Insurance

While there are genuine debates about whether privatized health insurance or nationalized health insurance policies make more sense, there can be little doubt that guarantee issue policies... Read More

The Awful Truth about Annuity and Insurance Leads

You see the websites, you see the ads: exclusive, never before sold, prospects eager to buy, insurance and annuity Leads. Some leads cost a few dollars -... Read More

Insurance Glossary of Terms

Assured - Those insured under the terms of an insurance policy.Benefit - The money paid to the policyholder when a claim is made.Bid Price - The selling... Read More

Online Insurance: The End of the High Street Broker?

When I was a lad, some 25 years ago, the Insurance Company called to your door every month to collect your life insurance premium. My recollection is... Read More

Medical Insurance - Health Insurance Coverage & Plans Explained

If you're trying to decide between health insurance plans, you'll find that there are several different kinds from which to choose. It's important that you weigh all... Read More

Life Insurance Settlement

A new financial tool is now available for senior citizens. Life Insurance Settlements are quickly becoming a way for seniors to receive money from an under performing... Read More

Cheap Term Life Insurance is Available Everywhere

Cheap term life insurance is easier to get than most people think. Dealing with a life insurance company has been made much simpler thanks to the Internet.... Read More

Life Insurance ? Do You Need It?

Many people are skittish about life insurance, because they feel that it is useless, or it makes them face their mortality, or they may arrogantly think that... Read More

Health Insurance Coverage

Health insurance is something that everyone needs today. The rising cost of visiting a health care provider or a hospital stay makes it imperative that everyone have... Read More

10 Tips to Save on Healthcare Insurance

Americans shopping for their own healthcare insurance can substantially cut premiums by following 10 simple steps, according to leading insurers.Answer Financial Inc. (http://www.answerfinancial.com), cites the following cost-saving... Read More

Risk Retention Groups RRG

In response to a hard insurance market in the mid 1908's, Congress passed the Liability Risk Retention Act of 1986. The legislation was intended to simplify the... Read More

Why Do You Need Homeowners Insurance?

The biggest single investment most people make in their lifetime is buying a home, condominium or townhouse. What you want to do is protect your home, personal... Read More

Theres No Problem Getting Texas Auto Insurance in Texas

Everything is big in Texas and so it is with Texas auto insurance. You will have a tough time driving in Texas if your car is uninsured.... Read More

Life Settlement: Towards A Free Market for Life Insurance

The Life Settlement market is all about providing due access to needed cash from existing life insurance.This so-called free market referred to as the life insurance industry's... Read More

What is Car Insurance?

Car Insurance is compulsory in the UK. You are required by law to have a policy to cover your liability to other road users.The Road Traffic Act... Read More

Types of Long Term Care Insurance

Regardless of what some people might think, medical insurance will not cover the expenses and services that long term care insurance covers.There are three types of long... Read More

Insurance for Those Who Run Bed and Breakfast Properties

A Bed and Breakfast, often referred to as a B&B, is a private residence with several rooms of which are set aside for overnight guests whose paid... Read More

Tips On How To Save When Buying Car Insurance

If you want to save money when you purchase your car insurance here are a few ways that can help you as you search for auto insurance.First... Read More