A Complex Game: The Life Settlement Process

Katt, Peter C.
March 2011
Journal of Financial Planning;Mar2011, Vol. 24 Issue 3, p46
Academic Journal
The article provides details of a life settlement case in the U.S. the author dealt in 2010. The author shares his experienced working with his friend for 10 years managing three universal life policies insuring him that are owned by an irrevocable trust. It provides the several key participants in life insurance which have determining roles and compensation channels that advisers should be aware of, including life settlement firm, settlement broker, and life insurance agent. The author states that he learned from experience that policies can end up being owned by small investor groups and individuals. Additionally, it is almost certain that policies will be transferred to another owner several times before the insured passes even if a seller knows who will initially own the policy.


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