Life Settlements are becoming more regulated and monitored throughout the financial services industry, and it is important to know the facts about life settlements.
Many companies will say that Life Settlements are available to seniors over the age of 60. However, the truth is that if the individual is healthy or only has limited health issues, than that required age will need to be over the age of 70. The Life Settlement Provider will use the insured’s age and health to determine a life expectancy. The life expectancy will be used to help determine the amount the provider can offer on the policy.
Another misconception about Life Settlements has to relate to the face amount. Many life settlement companies and brokers will say that the minimum is $100,000. However the truth is for true market maximization you need to have a face value of at least $250,000. The companies involved in the life settlement transaction have to follow similar processing and procedures for each case, regardless of the face value. A majority of the companies will not perform the extra legwork on a smaller face value policy. The smaller face value policies will not get as much attention, if any.
The offer amount of a Life Settlement is greatly determined by the annual premium amount for the life insurance policy. A handful of providers and brokers will say that they will purchase polices with up to a 9% annual premium. However, the truth is that very rarely will a policy receive an offer if the premium is above 5%. If they are able to attain a life settlement offer for a higher premium file, it will be for an individual that is either very old or has some serious health issues. In most cases, when the policy owner does receive an offer on a high premium case, it will be a small percentage of the face value.
The truth is that Life Settlements are a tremendous financial planning tool. However it is important to understand how they work, the requirements, and if your policy can be sold. Life Settlement Education will continue to grow as more and more regulation is met throughout the industry. It is important to understand that not every life insurance can be sold with a Life Settlement. However, many seniors are now exploring the option of a Life Settlement before lapsing or surrendering a life insurance policy. There is no reason to not explore a life settlement if the policy owner is considering lapsing or surrendering a policy.
New Reverse Mortgage RESPA Requirements
New Reverse Mortgage Lender Requirements January 1st 2010 was an important time for Reverse Mortgage Lenders. Real Estate Settlement Procedures Act or RESPA amendment was changed for Reverse Mortgages and there are now some new protections. These protections are built in to the changes to protect the borrower from improper increases in closing costs for the borrower. This article will explain how these changes in the RESPA will affect your financial future, and how it has made the very safe Reverse Mortgage, even safer.
Unveiling the Potential of Life Settlements for Seniors
Life settlements offer a financial lifeline to seniors by transforming life insurance policies into liquid assets. This innovative approach to retirement planning is gaining traction as it provides an alternative to traditional methods, allowing policyholders to access a significant portion of their policy's death benefit in cash. This cash influx can be used without restrictions, offering flexibility and financial relief. Life settlements are particularly beneficial for seniors whose insurance needs have evolved, presenting a strategic option to optimize their financial portfolios.
Seniors benefit from Reverse Mortgage Competition
Reverse Mortgage Lenders are offering better rates and more incentives as the competition in the reverse mortgage industry continues to grow.
