What are the benefits of using life settlements as part of a charitable gifting program? Donor Benefits: Making a donation to his/her favorite philanthropic organization without depleting cash reserves or losing income-producing assets. Getting a tax deduction for the fair market value (selling price) of the life insurance instead of only cash surrender value. Being
It is legal for someone to sell their life insurance policy?
It is legal for someone to sell their life insurance policy? Yes. The legal basis for the secondary market in life insurance started in 1911 with the U.S. Supreme Court case of Grigsby v. Russell (pg. 3). With this case it was shown that life insurance had all the legal qualities of property which meant
Are there a large percentage of people that will not benefit from their current life insurance policy?
Are there a large percentage of people that will not benefit from their current life insurance policy? Yes, whether the insured lets the policy lapse or gets the cash surrender value from the insurance company, 85% of universal policies and over 95% or term policies will NOT end up in a death benefit being paid
What is the benefit to policy holders to do a life settlement vs. cashing in the policy with the insurance company?
What is the benefit to policy holders to do a life settlement vs. cashing in the policy with the insurance company? A recent government report indicated that sellers of secondary insurance policies get an average 7 times more than the cash value from the insurance company. Third Party Confirmation U.S. Government and Accountability Office (GAO),
Is this an active market? Have a lot of seniors entered into these types of transactions?
Is this an active market? Have a lot of seniors entered into these types of transactions? Yes, the life settlement market is a thriving and growing market. The life settlement market has the potential to grow from approximately $87 billion in 2011 to $151 billion in 2020 in face amount of policies settled, according to