Q&A from Ashar's FSI Webinar: FINRA Sheds Light on Life Settlements

YOU ASKED. WE ANSWERED.

Here are some of the questions asked from our FSI Webinar: FINRA Sheds Light on Life Settlements

How long does a life settlement take?

Within the first conversation, our experts can determine if a policy can be worth more than the cash surrender value with just a few pieces of policy and health information. Like any other asset sale, a typical life settlement takes anywhere from 60 - 120 days.

***Complete the Let's Get Started form to schedule a call with our team and learn more about how timeframes can be expedited when applicable.

What age of the insured best fits the market?

Generally, retirement-age clients are most likely to qualify for a life settlement. More important than age is longevity. The shorter the life expectancy, the higher the life settlement offer. Look for clients who have had a decline in health since their life insurance policy was issued.

***Use our Life Settlement Probability Calculator to determine if your client's policy qualifies today!

Can a policy be sold out of an ILIT?

Absolutely! Many times clients thought their policies were paid up, and now premiums are due. In fact, we find that many policies in ILITs are "at risk" and can qualify for a life settlement.

Who is purchasing the policies?

Purchasers are some of the most well-known institutional investment groups – pension plans, private equity, and asset managers. Ashar requires each buyer relationship to complete a due diligence process. We never work with purchasers who represent individual investors or those who do not abide by all applicable regulatory requirements.

What are some good questions I can ask my clients when I do a policy review?

1. Does the original purchase purpose still exist?
2. Have you ever had your policy appraised for fair market value?
3. If there is a change to your health, how do you plan to pay for healthcare or long-term care needs? Learn more in our blog: 3 Reasons to Discuss Longevity with Clients.
4. Are you experiencing a financial transition (divorce, bankruptcy, retirement, increased longevity) that is creating a need for additional cash flow?

***Complete the Let's Get Started form to request the full questionnaire you can use in your planning discussions with clients.

What is the tax treatment of a life settlement transaction?

You can find that answer here: Current Tax Law (Revenue Ruling 2009-13)

Check out our 5 Key Takeaways from the FINRA Consumer Bulletin "What You Should Know About Life Settlements."

Ashar Group is a nationally licensed life settlement firm that protects the best interests of policy owners by creating a competitive policy auction to deliver the best value to the seller. Ashar Group does not sell life insurance, manage assets, or purchase policies. We are an independent resource for fiduciary advisors and their clients specializing in life insurance valuation for planning purposes.