Your life insurance policy is a valuable, trade-able asset that typically ranks toward the top in your portfolio under real estate or even a retirement account. Most individuals perceive life insurance as more of a liability and completely fail to realize the true economic value of what they have. A secondary market exists to benefit the policy holder and disrupt the monopsony the insurance carriers have created by providing a potentially larger payout compared to the carrier's surrender offer.
LifeTrust has over 200 sources from which to purchase Life Settlement policies, including life insurance agents, Life Settlement brokers, financial consultants and lawyers. LifeTrust over the years has worked hard to maintain an excellent relationship with its sources.
LifeTrust’s position in the market and its relationship with its sources puts LifeTrust is in a unique position to provide its clients with exceptional market color, whether it be current pricing or the kind and type of policy that is in demand in the current Life Settlement market. LifeTrust can also provide its Funders a strong indication of the high bid for any policy in which they might have interest.
The Life Settlement market evolved from the Viatical Settlement market, which emerged in the 1980s and early 1990s in response to the AIDS epidemic. Terminally ill AIDS patients needed a way to pay for very expensive medication and treatment. At the same time, investors were looking for different investments with strong returns. They offered terminally ill policy holders lump sum payments in exchange for their policies.
Since the early days of Viaticals, the Life Settlement market has experienced tremendous growth, approximately $91 billion in transactions since 2002 due to seniors seeking alternative options for saving money and raising funds by selling their life insurance policy as opposed to letting it lapse. Over 80% of universal life policies eventually lapse, which means policy owners may not be capturing the full potential of their life insurance policies and the Life Settlement market.
LifeTrust has designed and built a custom program to track every policy seen; the current database consists of over 36,000 policies and over 23,000 lives. LifeTrust has a proven and seamless computerized system for policy purchases allowing seamless transactions including the Funder’s approvals. The LifeTrust system tracks every policy from the time it is submitted for purchase until the purchase has closed, giving LifeTrust the ability to provide Funders up-to-the-minute status of every policy being purchased or under consideration.
LifeTrust follows strict guidelines to protect the insured’s Privacy and Confidentiality, therefore LifeTrust’s systems allows only approved personal to see the insured’s information. All information is kept in secure onsite servers.