senior-care-providers (4)
TRANSCRIPT
Sale of an existing life insurance policy
Age 65 or above
On the secondary market
For more than its cash surrender value
What is a life settlement?
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A thriving and growing market
$87 Billion in face amount in 2011
Estimated to grow to $151 Billion in 2020
Life Settlement: A Growing Market
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U.S. Supreme Court case Grigsby v. Russell
Established Life Insurance policy as “private property”, may be assigned by owner or sold
Washington state law requires insurance companies disclose this option to policy owners that are terminating or letting their policy lapse
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As clients get older, a life insurance policy may no longer be needed, or may become cost prohibitive to maintain.
Premium dollars may be better spent on retirement, long term care, maintaining lifestyle, other opportunities, etc.
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Policy Owners Face Decisions
“Should I…
Keep paying premiums?
Let the policy go?”
$1.4 trillion of coverage on people over the age of 65.
In 2011, settlement market was $5 billion in face value, less than 1% of its potential.
90% of all polices never pay out a death benefit.
Point is…policy owners still appear to be unaware of the life settlement option.
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Untapped Market Private Pay Solution
Market Facts:
In 2010, approximately $972 billion death benefits lapsed in US
Significant amount belonging to seniors
Extraordinary amount of missed opportunities
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Payouts: Cash Surrender Value vs.
Life Settlement
** These columns illustrate several actual cases. There is no set percentage of face amount paid. Criteria such as premium amount, type of policy, age, health, and life expectancy of the insured affect the settlement offer.
General Case Specifications Insureds aged 65+ or with health impairment
Life expectancy range is generally 15 years and below
Net Death Benefit in excess of $100,000
Universal life policies are ideal; however all policy types considered, even term policies that can be converted to a permanent policy
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Identifying Life Settlement Cases
Managed by an experienced team with over 25 years combined experience in life insurance and life settlements.
Including a premier licensed life settlement broker.
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The L.I.M.E Exchange
The competitive bid system ensures the highest possible offer is achieved from the life settlement
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Securing the Highest Offer
$202,000$235,000
$242,000
$550,000 $572,000$585,000
$590,000
$0
$100,000
$200,000
$300,000
$400,000
$500,000
$600,000
Round1
Round2
Round3
Round4
Round5
Round6
FinalRound
Case Example - Death Benefit $2.5 Million Final Offer of $590,000
Policy Specs: 77 Year Old Male; 8-10 Year LE; 4.1% premium; CSV < 1%
Three easy steps Complete the application We will provide underwriting services The LIME Exchange will negotiate offers on
acceptable transactions Please allow 4-6 weeks for processing
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Free Non-Binding Appraisal
"…the life settlement option appears to be not only greatly beneficial for policy owners wanting to sell their policies, but also provides an interesting investment opportunity for institutional investors willing to include longevity risk in their portfolio and to commit capital for the medium term.“
Professor Narayan Naik, London Business School
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Consider this…
Valuable service to clients – helps them discover money to pay for health care and retirement needs
Expands number of private pay seniors you can assist
Access new funds for clients
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WIIFM: Why Life Settlements for Senior Care Providers
Spouse has passed, policy no longer needed
Premiums no longer affordable
Need $ for long term care
Other family priorities
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WIIFM: Why Life Settlements for Clients