How Institutional Buyers Price Policies Using Discounted Cash-Flow Models Institutional buyers in the life settlement market typically price policies like long-duration cash-flow assets. The buyer pays an amount today, commits to paying future premiums, and expects to receive a...
Turning Life Settlement Proceeds Into a Charitable Legacy Selling a life insurance policy in the secondary market can create a meaningful lump-sum payment. For some policyowners, that liquidity opens the door to advanced planning strategies—especially those that combine personal...
Why Face-Amount Reductions May Void Life Settlement Eligibility Reducing the face amount of a life insurance policy can be a smart way to lower premiums and keep coverage in force. But if a policy might be sold in the...
Life Settlements as an Alternative Exit in Divorce Financial Planning Divorce often forces financial decisions that were easy to postpone during marriage: who keeps the house, how retirement accounts are split, and what happens to life insurance. Policies that...
How Accelerated Death Benefits Interact With Future Life Settlement Value An accelerated death benefit (ADB) rider allows a policyholder to access a portion of a life insurance policy’s death benefit early if specific conditions are met (commonly terminal illness,...
Avoiding STOLI Red Flags When Marketing a High-Net-Worth Policy High face-amount life insurance policies can be attractive in the secondary market, but they also receive heightened scrutiny for potential STOLI concerns. STOLI (stranger-originated life insurance) generally refers to arrangements...
The Role of Premium-Finance Unwind in Large Face-Amount Settlements Large face-amount life insurance policies are often funded using premium financing—a loan arrangement where a lender advances premium dollars, typically secured by collateral and a collateral assignment of the policy....
Using 1035 Exchanges Prior to a Life Settlement: Pros and Cons A 1035 exchange (named after Section 1035 of the U.S. tax code) allows certain insurance and annuity contracts to be exchanged for a new contract without triggering immediate...
Life Settlement Options for Trust-Owned Life Insurance (TOLI) Portfolios Trust-owned life insurance (TOLI) is commonly used in estate planning to keep life insurance proceeds outside a taxable estate, provide liquidity for heirs, or support long-term wealth transfer goals. Over...
Selling a Variable Universal Life Policy: Disclosures Investors Require Variable Universal Life (VUL) policies can be sold in the secondary market through a life settlement, but they come with added complexity compared to traditional universal life or whole life....