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Life Settlements: A Solution to a Growing Problem for Seniors

Sale of an existing life insurance policy

Age 65 or above

On the secondary market

For more than its cash surrender value

What is a life settlement?

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A thriving and growing market

$87 Billion in face amount in 2011

Estimated to grow to $151 Billion in 2020

Life Settlement: A Growing Market

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U.S. Supreme Court case Grigsby v. Russell

Established Life Insurance policy as “private property”, may be assigned by owner or sold

Washington state law requires insurance companies disclose this option to policy owners that are terminating or letting their policy lapse

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There is a reason Life Insurance Companies have Billions in Assets

Universal PoliciesRe-ceived

Benefits15%

No Benefits Re-ceived

85%

85% Do not pay

death benefits

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Term Policies

95% Do not pay

death benefits

Benefits ReceivedNo Bene-fits Paid

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As clients get older, a life insurance policy may no longer be needed, or may become cost prohibitive to maintain.

Premium dollars may be better spent on retirement, long term care, maintaining lifestyle, other opportunities, etc.

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Policy Owners Face Decisions

“Should I…

Keep paying premiums?

Let the policy go?”

$1.4 trillion of coverage on people over the age of 65.

In 2011, settlement market was $5 billion in face value, less than 1% of its potential.

90% of all polices never pay out a death benefit.

Point is…policy owners still appear to be unaware of the life settlement option.

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Untapped Market Private Pay Solution

Market Facts:

In 2010, approximately $972 billion death benefits lapsed in US

Significant amount belonging to seniors

Extraordinary amount of missed opportunities

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Payouts: Cash Surrender Value vs.

Life Settlement

** These columns illustrate several actual cases.  There is no set percentage of face amount paid.  Criteria such as premium amount, type of policy, age, health, and life expectancy of the insured affect the settlement offer.

General Case Specifications Insureds aged 65+ or with health impairment

Life expectancy range is generally 15 years and below

Net Death Benefit in excess of $100,000

Universal life policies are ideal; however all policy types considered, even term policies that can be converted to a permanent policy

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Identifying Life Settlement Cases

Managed by an experienced team with over 25 years combined experience in life insurance and life settlements.

Including a premier licensed life settlement broker.

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The L.I.M.E Exchange

The competitive bid system ensures the highest possible offer is achieved from the life settlement

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Securing the Highest Offer

$202,000$235,000

$242,000

$550,000 $572,000$585,000

$590,000

$0

$100,000

$200,000

$300,000

$400,000

$500,000

$600,000

Round1

Round2

Round3

Round4

Round5

Round6

FinalRound

Case Example - Death Benefit $2.5 Million Final Offer of $590,000

Policy Specs: 77 Year Old Male; 8-10 Year LE; 4.1% premium; CSV < 1%

Three easy steps Complete the application We will provide underwriting services The LIME Exchange will negotiate offers on

acceptable transactions Please allow 4-6 weeks for processing

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Free Non-Binding Appraisal

Good For You

Good For Seniors

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Life Settlements

"…the life settlement option appears to be not only greatly beneficial for policy owners wanting to sell their policies, but also provides an interesting investment opportunity for institutional investors willing to include longevity risk in their portfolio and to commit capital for the medium term.“

Professor Narayan Naik, London Business School

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Consider this…

“The secondary market in life-insurance policies is good for consumers.”

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Benefits to those providing services to seniors

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Valuable service to clients – helps them discover money to pay for health care and retirement needs

Expands number of private pay seniors you can assist

Access new funds for clients

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WIIFM: Why Life Settlements for Senior Care Providers

Spouse has passed, policy no longer needed

Premiums no longer affordable

Need $ for long term care

Other family priorities

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WIIFM: Why Life Settlements for Clients

Thank You For Your Time!

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