Life Settlement News

Marvin Margolis, an 80-year-old Manhattan financial consultant, is looking for investors willing to bet on when he will die.

Two years ago, Mr. Margolis bought a large life insurance policy. Now, he’s considering selling it to a group of investors, a deal that should give him as much as $2 million to enjoy in his final years. In return, the investors will get the policy’s $7 million payout when he dies — which they hope will be soon, so they can stop paying his premiums.

The life settlement industry is poised for another major growth spurt in the latter half of 2006 as many non-recourse premium financing contracts enter the secondary market, according to life settlement broker John Welcom of Welcome Funds. Life settlements enable seniors to sell existing life insurance policies for sums that exceed their cash surrender values.

The insurance industry is a sweeping part of our culture that impacts many aspects of our lives, both personal and professional. But, rather than try to grade the entire industry, I would like to focus my “mid-year grading report” on recent trends in the area of life settlements.

Fate continues to shower blessings on the greatest generation. Elderly Americans may soon be able to supplement their incomes by collecting fees from investors who wish to bet on their life expectancy. That, at least, is the fear of the life insurance industry, still wondering how to get the “viatical” genie back into the bottle.

Life Settlement Solutions, Inc. Declares June Life Settlement Awareness Month; Educational Opportunities Will Highlight First-Ever Event
Life insurance agents and brokers looking to side-step the usual summer sales blues may have heard of life settlements, but may not have sufficient knowledge to offer them to clients.