TITLE

No Settlement Over Life Settlement Debate

PUB. DATE
August 2005
SOURCE
Journal of Financial Planning;Aug2005, Vol. 18 Issue 9, p21
SOURCE TYPE
Academic Journal
DOC. TYPE
Article
ABSTRACT
This article focuses on the results of a study conducted by life insurance group Deloitte Consulting LLP in New York in 2005 on the life insurance market. Most impaired seniors needing cash should not sell their life insurance policies before death. While selling a policy is a better deal than surrendering it, keeping the policy is usually the best deal of all. It is a better deal that insureds needing cash should seek financing alternatives such as selling securities or taking out a reverse mortgage. Keeping a policy versus selling it assumes that the insured wants to pass money to heirs or charity. If not, a life settlement may make economic sense. The study revealed that life settlements paid a mere 20 cents on each face-value dollar. The study claims that 50 to 67 percent of the policies' intrinsic economic value is eaten up by life settlement transaction costs. Life settlement proponents argue that the study is seriously flawed because it is based on unreliable data provided in a single state.
ACCESSION #
17857438

 

Related Articles

  • How To Optimize Communication With Older Clients. Eichelbaum, Ellen // National Underwriter / Life & Health Financial Services;9/13/99, Vol. 103 Issue 37, p27 

    Provides information on the importance of communication as part of the sales process by insurance professionals in dealing with older people. Process of collaboration between the insurance agent and the client; Meaning of communication; Creation of mutual understanding between the agent and the...

  • Senior citizens. Jones, Chuck // LAN: Life Association News;Aug98, Vol. 93 Issue 8, p60 

    Focuses on the senior citizen market for life insurance in the United States. Comments from several agents; Market trends; Techniques in reaching seniors; Offering long-term care insurance; Problems facing agents; Advice for seniors for post-retirement years. INSET: Advice to agents..

  • With Older Seniors, Advise According To The Worst-Case Scenario. Friedman, Douglas I. // National Underwriter / Life & Health Financial Services;1/9/2006, Vol. 110 Issue 2, p20 

    The article provides advice on selling life insurance and annuities to older seniors in the U.S. The author suggests that when advising a seniors, agents should consider the worst-case scenario and act accordingly. He provides a critical analysis of various transactions such as the proposals...

  • Tillinghast Unveils Older Age Mortality Study. Connolly, Jim // National Underwriter / Life & Health Financial Services;3/3/2008, Vol. 112 Issue 8, pS15 

    The article focuses on the study about older age mortality and its impact on life insurance companies conducted by Tillinghast, a company that provides actuarial consulting in insurance in Stamford, Connecticut. The study entitled "Tilllinghast Older Age Mortality Study (TOAMS 2)," reveals that...

  • More fun than money. Scholp, Alexander J. // LAN: Life Association News;Sep98, Vol. 93 Issue 9, p176 

    Relates author's experiences in selling life insurance (LI). Opportunity to choose location in the United States to set up the selling practice; Factors affecting financial success and happiness in the LI business; Experience of giving a presentation to other LI agents.

  • Life, Annuity Sales Edge Higher. BELL, ALLISON // National Underwriter / Life & Health Financial Services;9/5/2011, Vol. 115 Issue 17, p12 

    The article reports that the sale of insurance policies has been increased by one percent in the second quarter of 2011 in the U.S., according to the life insurance survey done by Life Insurance and Market Research Association (LIMRA), Windsor, Connecticut.

  • EIA certification does support sales. Hahn, Alan C. // National Underwriter / Life & Health Financial Services;6/16/98, Vol. 102 Issue 11, p12 

    Examines the benefits of certification programs for equity indexed annuities (EIA). Approaches used by several insurance companies in marketing the product; Importance of certification programs for EIA; Questions to ask before signing up for a certification program.

  • Illustrating the issue. Carson, James M.; Forster, Mark D. // Best's Review / Life-Health Insurance Edition;Jun97, Vol. 98 Issue 2, p62 

    Examines marketing and ethical issues that need to be addressed by life insurers in the United States in providing policy illustrations. Sales presentations that accurately portray the relative effect of all important policy credits and charges; Correlation of surrender values to policy credits...

  • Bringing down the house. Stein, Robert // Best's Review / Life-Health Insurance Edition;Jun97, Vol. 98 Issue 2, p67 

    Offers insights on enhancing the sales of life insurance products in the United States. Focus on bringing value to customers in clearly defined and understood ways; Ineffectiveness of the strategy of attempting to excel in every activity; Alignment of relationships between distribution channels...

Share

Read the Article

Courtesy of VIRGINIA BEACH PUBLIC LIBRARY AND SYSTEM

Sorry, but this item is not currently available from your library.

Try another library?
Sign out of this library

Other Topics