Life Settlement Reality

Life settlements

Life insurance policies represent a powerful arrow in consumers' quivers, if only they knew to pull it out.

"I'm only 46 but I've been taught my entire life that you don't buy life insurance for yourself; it's for those you love," says Paul J. Moe, chairman of a financial services company in Minnetonka, Minn.

But the children named in these policies may already be financially secure.

"Meanwhile, the retired couple's income-producing ability decreases, so many times they let the policy go," Moe explains.

Today that's baloney for many Americans over age 65. Retirees can sell virtually any policy except group coverage to institutionally funded/licensed life settlement companies and not only pocket a chunk of change but save future premium payments in the same deal.

Life Settlement companies use standard life insurance actuarial tables to determine an average remaining life expectancy, then buy the policy at a price higher than its cash value but less than the maturity cash-in.

"Otherwise, it's not a life settlement. It's immoral," Moe says.

He's working with state and federal legislators to make this approach the law. The life settlement industry also has banded to lobby congressmen to declare at least the first $500,000 as tax-free income.

Even without the current tax presents, CPAs and financial advisers have begun urging their clients to sell off and invest the money in long-term care plans, annuities or even an outright gift to the children. Since September 2001, Moe has received in excess of $1 billion worth of applications.

If you are an individual policy owner, insurance agent, or financial professional, please call us toll free (888) 973-8377 to discuss your situation. You can also reach us via or online email form.