Life Settlement News

Today, Russel Dorsett, President of the Life Insurance Settlement Association (LISA), released the following statement:

The Life Insurance Settlement Association (LISA) has announced that the European Life Settlement Association (ELSA) has been named as an Honorary Member of the association, joining fellow European association BVZL as the second entity to receive the exclusive distinction.  Speaking to the appointment, LISA Executive Director Doug Head explained, “this move further strengthens our relationship with ELSA.  As the settlement market continues to grow and more capital flows from Europe, this relationship will be invaluable to both American and European interests.”

On Columbus Day, 2009, California seniors were presented with the fine gift of a welcome new law regulating life settlements, Senate Bill 98. The Governor’s signature on this important legislation authored by Senate Insurance Committee Chair Ron S. Calderon (D - District 30) completes extensive work by both chambers of the legislature. The bill, which takes effect on July 1, 2010, regulates the life settlement industry in California, which has seen marked growth in the past decade. A Life Settlement is the sale of an existing life insurance policy to a third party for more than its cash surrender value but less than its net death benefit.

On November 8-10, life settlement professionals from all walks of life will converge on New York City for the Life Insurance Settlement Association’s (LISA) 15th Annual Fall Life Settlement Conference. As 2009 winds down and the US economy shows signs of leveling, LISA proudly brings together sophisticated investors, institutional funders and other life settlement professionals for an intimate three day meeting. The LISA Fall Conference comes in the midst of a significant show of interest by the federal government and the general public. With hearings on Capitol Hill, increased activity on Wall Street and a surge in mainstream media, the life settlement industry is poised to make major gains in investment influx and public awareness.

Yesterday, World News Tonight (ABC) considered Life Settlements. Producers of the program found a physician consumer, Dr. Eddy Powell, who had happily sold his life insurance policy for far more than the value which the life insurer would have offered him at the time. Dr. Powell sold the policy for a value which required the buyer to pay the premiums for the rest of Dr. Powell’s (presumably long) life. In the ABC piece, Dr. Powell expressed regret for having sold the policy because, though the sale afforded him the ability to pay off his debts, he was no longer the owner of the policy. According to some experts, Dr. Powell appeared to have forgotten that, before considering the life settlement option, he faced two unsavory choices: sell his policy to the insurer for pennies on the dollar or allow it to lapse for a complete loss. The Life Insurance Settlement Association (LISA) encourages people who can hang onto their policies to do so, but for those who would otherwise lapse or surrender their policies, the settlement option should be considered wherever possible. The public needs to know that they have choices and that a life settlement is one of them.

Yesterday on Capitol Hill, Russel Dorsett, President of the Life Insurance Settlement Association (LISA) testified before Congress on the benefits of life settlements to American consumers. In testimony to the House Subcommittee on Capital Markets, Insurance and Government-Sponsored Enterprises, Mr. Dorsett reported that American consumers have benefited greatly from the life settlement market and have received nearly $10 billion over the past decade, “making it possible for them to afford retirement, medical care, or simply to enjoy the lifestyle they have earned,” said Dorsett, continuing: “The average settlement pays policy owners 4 to 6 times the policy’s cash value.”

On September 17, life settlement professionals, agents, and others will enjoy an exclusive look at the preeminent membership organization leading the secondary market for life insurance. The Life Insurance Settlement Association (LISA) will host a free webinar opening its doors to all interested parties.

A recent article in Investment News warned companies of the dangers of not investing resources into their respective compliance departments. Failure to heed that warning could cost companies more in resulting fines than the cost of any immediate investments in the retention of and education for their compliance personnel.

The Life Insurance Settlement Association (LISA) invites all interested parties to a FREE webinar this Wednesday, August 26th, 2 p.m. (EDT), to experience the tools and resources available to current members on the LISA members-only website and see all that prospective members can look forward to as a full LISA member.

In an uncertain economic environment, baby boomers are reconsidering their retirement needs and taking a closer look at their financial outlook. Many of them are revisiting their life insurance needs and finding that a life settlement option could be a great way to raise cash during this economic downturn.