LIS SelfRun Life Settlements

Document Sample
LIS SelfRun Life Settlements Powered By Docstoc
					“All the Benefits of Dozens
       of Relationships
      with One Simple
         Application”
             Presented by
    Life Insurance Settlements Inc.




                                      05/2005
WHAT IS A LIFE SETTLEMENT?

A life settlement is the sale of an
existing life insurance policy that
gives the policy owner a cash
settlement in excess of the current
cash surrender value.
WHAT TYPES ARE INCLUDED:
  Universal
  Whole Life
  Term
  Variable
  Joint
  Group
  Key Man
WHO MAY QUALIFY?
Anyone over the age of 65 years who has life
insurance whose circumstances have
changed since the original policy was issued.

     Health
     Personal
     Financial
>> PRODUCERS FINANCIAL PLANNERS ATTORNEYS ESTATE PLANNERS NON-PROFIT ORGANIZATIONS




                           CHANGING CIRCUMSTANCES…

                               Under-Performing Policies
                               Estate Size Reduction
                               Family Issues
                               Divorce or Bankruptcy
                               Deterioration of Health

                               Retirement
                               Sale of Business
                               Death of Spouse
                               Estate Tax Reform
                               1035 Exchange
   &
  LIFE SETTLEMENTS

An Innovative
   Wealth

Estate Planning
      Tool
>> PRODUCERS FINANCIAL PLANNERS ATTORNEYS ESTATE PLANNERS NON-PROFIT ORGANIZATIONS




                           RECENT LIFE SETTLEMENTS
                           TWO TYPES OF PROSPECTS

                              Those who no longer need insurance
                              Those who are utilizing a Life Settlement
                              to fund an alternative investment
CASE HISTORY EXAMPLE 1
FEMALE – Age 72
$3,000,000.00 UL Policy
             • Small Cash Value
             • Under-Performing Policy


LIFE SETTLEMENT SOLUTION
    Settlement Amount of
          $840,000.00
 *Insured purchased an annuity with the proceeds
CASE HISTORY EXAMPLE 2
MALE – Age 65
$4,000,000.00 UL Policy
           • Cash Value $90,000.00
           • Retiring Executive


LIFE SETTLEMENT SOLUTION
         Settlement Amount of

      $525,000.00
     *Received $435,000 over surrender
LAPSE EXAMPLE
MALE – Age 69
$3,000,000 Term Policy
           • Client Was Going to Lapse
           • Divorce Decree



 LIFE SETTLEMENT SOLUTION
           Settlement Amount of
         $400,000.00
NEW PRODUCT EXAMPLE
MALE – Age 77
7 UL Policies Totaling $13 Million
               • Premiums $400,000
               • Surrender Value $1.8 Million

LIFE SETTLEMENT SOLUTION
                   Settlement Amount of

            $2,562,336.00
 *Agent sold client $27mil of current generation UL and VUL policies
BUY/SELL EXAMPLE
AGE 84 – Minor Health Issues
$450,000 Policy
           • Premiums $32,000
           • Buy/Sell Agreement
           • Partner Died




LIFE SETTLEMENT SOLUTION
          Settlement Amount of

        $106,000.00
New
BUSINESS
Opportunities
MULTIPLE COMMISSIONS
     FROM ONE STRATEGY
 Referral fee from the life settlement transaction

 Trailer commission on policy for agent of record
 Investment or annuity commissions from the capital
 created from the life settlement transaction
 Commission on new life insurance products that
 better suits your clients current needs

 Commission on the conversion if the policy being
 considered is a term product

 Commissions for referring other agents or agencies
 to Life Insurance Settlements Inc.
SETTLEMENT TIMELINE

Upon Receiving the Following:
1.    Complete application & sign authorization
2.    Copy of photo identification
3.    Copy of policy, if obtainable


Appraisal Process Consist of:         Completing the Settlement Process:
1.    Collecting of policy and        1.   Contracts are delivered to the
      medical information                  policy owner
2.    Complete initial                2.   Review, sign and return of
      underwriting of case                 settlement package
3.    Send complete case to           3.   Recorded changes by
      funding organizations                insurance carrier
4.    Negotiate and obtain            4.   Escrow organization releases
      offers or declinations               cash settlement to client
5.    Communicate appraisal           5.   Client rescission period
      value and compensation               – Dependent on state
                                      6.   Referral source is compensated
                                           – Post rescission period
Powerful New
  FINANCIAL
  PLANNING
       Tool…
PARAMETERS OF A LIFE SETTLEMENT

How much will be received for a policy?
There are many factors that determine the
offer amounts:
      Age
      Premiums
      Client’s Health
      Type of Policy
      Insurance Company Rating
      Policy Size
      Competitive Bidding
      State of Residency
GENERAL RULE: Age, health and future premiums are
the primary factors that determine the amount of the Life
Insurance Settlements, Inc. offer. Competitive bidding
assures that you have found the highest offer.
APPROACHING THE CLIENT
 Proactive Way to Speak
 Lower Premiums/Better Policy
 Better Interest Rate
 Manage Expectations of Client
LIS IS A NETWORK OF FINANCIAL
COMPANIES ADVISORS & AGENTS

  Combined Strengths
  Maximum Settlement Amounts
  Unparalleled Expertise Since 1994
  Marketing & Advertisement Support
  Tools
  Education
                      CORPORATE OFFICE :
                      550 WEST CYPRESS CREEK ROAD, SUITE 300
                      FORT LAUDERDALE, FL 33309




PROVIDER PARTNERSHIPS…
 Exclusive Funders
 Long-Term Relationships
COMPLIMENTARY SERVICE

  Core Competencies
  Value Add
  Building A Significant
  Profit Center
BENEFITS TO THE CLIENT…
  No Cost
  Liquidity
  Fund Alternative Product
  to Fit Current Needs
  Relief of Premium Expense
  Create a Better Solution for
  their Current Needs
EXAMPLES OF TAX BENEFITS
The following example shows a typical policy with
a face value of $1 million, $55,000 of premiums paid
and a cash surrender value of $70,000. For example
purposes we will use a settlement amount of $200,000
paid to the policy owner. The tax position would be:




   * Tax obligations will vary with the sale of an insurance policy. Life Insurance Settlements,
 Inc. does not make any representations as to the tax treatment of a sale of a life insurance
 policy. Life Insurance Settlements, Inc. strongly encourages you to consult with your tax
 advisor, Attorney or financial planner as it relates to your specific situation.
FRONT & BACK-END OF A LIFE SETTLEMENT
FRONT-END: If a policy owner sells a policy to a licensed
settlement provider and the transaction has been
consummated in accordance with the state’s viatical and life
settlement laws and regulations (front-end), the client and his
insurance advisor have not participated in a transaction
regulated as a security.


BACK-END: If an insurance advisor is raising funds for
financing entities or reselling purchased policies to
individual investors (back-end) this, according to most
states, would constitute a security.
PREQUALIFICATION RESULTS…
 Clients who qualify for life settlements
 can see what the highest purchase
 offer is.

 If they choose to accept the payment, they
 have added bottom-line dollars to their
 asset base.

 Those who don't qualify, they will find out
 the total liquidation value of that asset.
 Therefore they will be able to properly
 re-calculate their net worth and know
 their true financial picture.
  550 WEST CYPRESS CREEK ROAD, SUITE 300 • FORT LAUDERDALE, FLORIDA 33309
       TOLL FREE 866.326.LIFE • FAX 954.315.2841 • WWW.LISETTLEMENTS.COM

Disclaimer: Life Settlement amounts are based on numerous factors. The case examples are for illustration purposes and does not
represent future or previous offers, statements, percentages or amounts. Actual results will vary. The industry average purchase price
obtained by viators ranges from 12-24% of the face amount of a qualified life insurance policy. Some or all of the proceeds of a life
settlement may be taxable under federal or state income tax laws from the sale of one's life insurance policy. Advice from a professional
tax advisor is recommended. Life Insurance Settlements, Inc. is a licensed broker or producer in the following states: AK, CT, FL, NV, NY,
OH, OR, UT, TX, VA, KS, MS, NM, & NC

				
DOCUMENT INFO
Shared By:
Categories:
Tags:
Stats:
views:1
posted:9/13/2012
language:English
pages:26