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.

Reverse Mortgages for luxuries

Homeowners are using reverse mortgages to do everything from buying airplanes or recreational vehicles to renting apartments a few months a year in Paris.

Another use becoming more common: Purchasing a second home for a vacation getaway. With property values soaring in recent years and interest rates near record lows, an increasing number of homeowners are deciding to enjoy the rewards of having paid off their house.

All of this is a far cry from just a few years ago when reverse mortgages were generally considered loans of last resort for seniors to avoid foreclosure, make necessary home repairs, or simply cover living expenses, such as prescription drugs.

"The product has evolved from needs-based reasons" to funding people's wants, says James Mahoney, chief executive officer of Irvine, Calif.-based Financial Freedom Senior Funding Corp., one of the largest U.S. reverse-mortgage purveyors and a unit of IndyMac Bancorp Inc.

With a reverse mortgage, instead of the borrower making payments to the lender, as with a traditional mortgage, the lender makes a payment, or payments, to the borrower. The borrower keeps control of the house and doesn't have to pay back the money as long he or she lives there. When the homeowner dies or moves out, the house is sold, the loan is paid off, and any money left over goes to the owner or the estate.

There's no way to put a number on how many people are using such loans for luxury items, because no one tracks the use of proceeds. But the number of federally insured reverse mortgages made in the fiscal year that ended Sept. 30 doubled to about 38,000, worth about $6 billion, from a year earlier - and represented nearly one-third of all reverse mortgages made since 1989, according to federal housing data. That figure, though, still represents less than 1 percent of mortgages issued over that period.

If your are interested in seeing the payout you could receive from a reverse mortgage please call us toll free at 1-888-973-8377 or visit our online free analysis form at:
http://www.rtgconsultants.com/free_reverse_mortgage_analysis.html

Life Settlement Market Potential

Financial professionals today have an exceptional opportunity in the life settlement market. You now have the ability to financially assist your clients that has never before been available. A life settlement presents insured individuals with a more desirable alternative to surrendering a life policy or letting it lapse.

The fastest growing segment of the countries population is the aging baby boomers. Currently there is approximately $492 billion (1) of life insurance in force for people over 65 years of age. One quarter or $108 billion is available for life settlements. Their financial and estate planning needs are constantly changing. The demand for more flexible financial tools is evident and quickly increasing. A life settlement can help you meet these demands with great monetary benefits to you and your clients. This represents a unique opportunity for today's financial planners, estate planners, life agents and other financial professionals.

Call us today toll free at 1-888-973-8377 with any questions regarding a life settlement case.

You can also request a free life settlement agent kit by visiting the below URL:
http://www.rtgconsultants.com/life_settlement_agents.html

Example of a Reverse Mortgage

Mr. Hutton is 74 years old and his wife is 72 years old. Their home has been appraised at $300,000 and they own it free and clear of mortgage. They qualify for a reverse mortgage and are eligible for a lump sum of cash in the amount of $138,000 or a guaranteed income of $900 per month for as long as they live in their home. If they purchased an annuity with the cash, they would receive $960 per month for the rest of their lives wherever they live. If they choose to receive the money from their reversed mortgage in the line of credit option, the unused portion would grow at the same rate as their loan balance. They would receive the interest earned on a monthly basis ($675) or on an annual basis ($8,400) and still have the $138,000 available as reserve. They can also mix or match those options to provide them with the most appropriate solutions for their needs. Regardless of which option they choose, the reverse mortgage provides several practical options to fund either their long-term care insurance policies or their long-term care services.

Find out your lump sum, montly payout, or credit line amount for free. Visit our online free reverse mortgage analysis.

We also can provide the information to you over the phone, call us anytime toll-free. 1-888-973-8377 Call Now.

Reverse mortgage ignorance a growing trend

Found this good reverse mortgage article..

Many seniors unaware of home's long-term-care-financing potential

Wednesday, April 20, 2005

The National Council on the Aging (NCOA) has published a report showing that reverse mortgages can help an estimated 13.2 million elderly homeowners pay for long-term care, allowing many to remain independent in their homes longer.

Of the 13.2 million eligible households, an estimated 9.8 million currently have an impairment that can make it hard to live at home, according to the study, "Use Your Home to Stay at Home: Expanding the Use of Reverse Mortgages to Pay for Long-Term Care."

A reverse mortgage is a loan that enables homeowners 62 years or older to borrow against the equity in their home, without having to sell their home, give up title, or take on a new monthly mortgage payment. The loan proceeds, which can be used for any purpose, may be taken out as a lump sum payment, fixed monthly payment, line of credit, or a combination. The loan amount depends on the borrower's age, current interest rates, and the value and location of the home.

State legislators, Medicare directors, regional associations on aging, faith-based groups, and officials from health and human service organizations recently met to discuss the findings.

"Most policymakers had no idea of the potential for reverse mortgages," said Dr. Barbara Stucki, a Bend, Ore., researcher and the project manager. "The results surprised them mainly because there was a general sense of ignorance about the product."

In total, these households could access as much as $695 billion through reverse mortgages. For individuals, the extra cash could go a long way to help with family caregiving and other long-term care expenses.

For example, a borrower aged 75 years old with a home worth $100,000 could receive a reverse mortgage that could pay a family caregiver $500 a month for almost 12 years, $1,120 a month in adult day care services for almost five years, or $2,160 a month in home care (daily care for at least four hours) for 2.5 years.

"The study shows that reverse mortgages have significant potential to help seniors pay for home healthcare services or to make home modifications that make independent living possible," said Peter Bell, president of the National Reverse Mortgage Lenders Association.

The report is the first in a multi-phased project focused on educating policymakers, the healthcare industry, the aging community and others about the potential use of reverse mortgages to help reform America's long-term-care financing policies. It was funded by the Centers for Medicare and Medicaid Services and the Robert Wood Johnson Foundation. Medicare and Medicaid have been seeking potential relief to mounting financial pressures.

"This is an important study that, for the first time, shows that elderly homeowners, many with chronic conditions, can use reverse mortgages to pay for care at home," said Jim Knickman, vice president for research at the Robert Wood Johnson Foundation. "We hope that these findings will prompt new thinking into how the nation addresses the challenge of financing long-term care."

NCOA projected annual Medicaid cost savings of $3.34 billion nationwide by 2010 assuming four percent of America's eligible seniors used a reverse mortgage to pay for healthcare services, or, if one in four used a reverse mortgage, $4.86 billion would be saved.

A reverse mortgage isn't repaid until the borrower moves out of the home permanently, and the repayment amount can't exceed the value of the home. After the loan is repaid, any remaining equity is distributed to the borrower or borrower's estate. A senior's home doesn't have to be owned free and clear to qualify for a reverse mortgage.

The NCOA study shows that while two-thirds (67 percent) of older homeowners today have heard of a reverse mortgage, only 9 percent indicate that they are likely to use this financing option to pay for assistance at home. Many don't understand the program,feel that they risk impoverishment, or that they won't be able to leave a legacy to their children if they tap home equity. The cost of these loans and current Medicaid policies on how reverse mortgages affect eligibility for long-term care benefits are other perceived barriers.

"We need expanded public education and additional work to explore how to reduce the cost of tapping home equity, to strengthen consumer protections, and promote innovation," Stucki said. "Overcoming these obstacles will mean that reverse mortgages can play an important role in helping many older Americans pay for the supportive services they need to continue to live at home safely and comfortably."

Tom Kelly's new book "The New Reverse Mortgage Formula" (John Wiley & Sons, New York) is available in local bookstores and on amazon.com. He can be reached at news@tomkelly.com.

Wednesday, April 20, 2005

The National Council on the Aging (NCOA) has published a report showing that reverse mortgages can help an estimated 13.2 million elderly homeowners pay for long-term care, allowing many to remain independent in their homes longer.

Of the 13.2 million eligible households, an estimated 9.8 million currently have an impairment that can make it hard to live at home, according to the study, "Use Your Home to Stay at Home: Expanding the Use of Reverse Mortgages to Pay for Long-Term Care."

A reverse mortgage is a loan that enables homeowners 62 years or older to borrow against the equity in their home, without having to sell their home, give up title, or take on a new monthly mortgage payment. The loan proceeds, which can be used for any purpose, may be taken out as a lump sum payment, fixed monthly payment, line of credit, or a combination. The loan amount depends on the borrower's age, current interest rates, and the value and location of the home.

State legislators, Medicare directors, regional associations on aging, faith-based groups, and officials from health and human service organizations recently met to discuss the findings.

"Most policymakers had no idea of the potential for reverse mortgages," said Dr. Barbara Stucki, a Bend, Ore., researcher and the project manager. "The results surprised them mainly because there was a general sense of ignorance about the product."

In total, these households could access as much as $695 billion through reverse mortgages. For individuals, the extra cash could go a long way to help with family caregiving and other long-term care expenses.

For example, a borrower aged 75 years old with a home worth $100,000 could receive a reverse mortgage that could pay a family caregiver $500 a month for almost 12 years, $1,120 a month in adult day care services for almost five years, or $2,160 a month in home care (daily care for at least four hours) for 2.5 years.

"The study shows that reverse mortgages have significant potential to help seniors pay for home healthcare services or to make home modifications that make independent living possible," said Peter Bell, president of the National Reverse Mortgage Lenders Association.

The report is the first in a multi-phased project focused on educating policymakers, the healthcare industry, the aging community and others about the potential use of reverse mortgages to help reform America's long-term-care financing policies. It was funded by the Centers for Medicare and Medicaid Services and the Robert Wood Johnson Foundation. Medicare and Medicaid have been seeking potential relief to mounting financial pressures.

"This is an important study that, for the first time, shows that elderly homeowners, many with chronic conditions, can use reverse mortgages to pay for care at home," said Jim Knickman, vice president for research at the Robert Wood Johnson Foundation. "We hope that these findings will prompt new thinking into how the nation addresses the challenge of financing long-term care."

NCOA projected annual Medicaid cost savings of $3.34 billion nationwide by 2010 assuming four percent of America's eligible seniors used a reverse mortgage to pay for healthcare services, or, if one in four used a reverse mortgage, $4.86 billion would be saved.

A reverse mortgage isn't repaid until the borrower moves out of the home permanently, and the repayment amount can't exceed the value of the home. After the loan is repaid, any remaining equity is distributed to the borrower or borrower's estate. A senior's home doesn't have to be owned free and clear to qualify for a reverse mortgage.

The NCOA study shows that while two-thirds (67 percent) of older homeowners today have heard of a reverse mortgage, only 9 percent indicate that they are likely to use this financing option to pay for assistance at home. Many don't understand the program,feel that they risk impoverishment, or that they won't be able to leave a legacy to their children if they tap home equity. The cost of these loans and current Medicaid policies on how reverse mortgages affect eligibility for long-term care benefits are other perceived barriers.

"We need expanded public education and additional work to explore how to reduce the cost of tapping home equity, to strengthen consumer protections, and promote innovation," Stucki said. "Overcoming these obstacles will mean that reverse mortgages can play an important role in helping many older Americans pay for the supportive services they need to continue to live at home safely and comfortably."

Tom Kelly's new book "The New Reverse Mortgage Formula" (John Wiley & Sons, New York) is available in local bookstores and on amazon.com. He can be reached at news@tomkelly.com.

Aricle URL:
http://www.rtgconsultants.com/reverse-articles/ncoa.html

Life Settlement Database

The Life Settlement Institute (LSI) will explore the creation of a national viatical settlement database similar to the one used by life and health insurers to prevent fraud, but critics wonder whether such a database will catch crooks or compromise privacy.

The database will house information that will aid viatical companies and "support professionals as well as government regulators in tracking fraudulent or suspicious behavior" in viatical-related transactions, according to LSI, a nonprofit association made up of six privately-held viatical settlement companies.

LSI contends that such a database will also identify policy sellers or insureds who have fraudulently represented their medical conditions, brokers who have engaged in questionable conduct, and other professionals (such as doctors or financial advisers) who have engaged in questionable conduct.

But privacy advocates are not entirely sold on the idea. "The concern is that the information contained in the database may be used for purposes other than preventing fraud, such as to sell you insurance or a loan" says Sue Blevins, president of Institute for Health Freedom, a nonprofit Washington, D.C., think tank. "There would have to be some kind of disclosure and consent involving all the parties."

But LSI President David M. Lewis says law-abiding citizens have nothing to worry about and the "ultimate" database will comply with all applicable federal and state laws, compliment other government anti-fraud initiatives, and "be created in such a way as to safeguard the dissemination of personal and private information."

Preliminary research will be conducted, he says, to explore "potential exposures to liability, issues of immunity, privacy, and defamation lawsuits in connection with developing such a database."

HIPAA compliance

What worries privacy advocates most is that such a database will be designed to be compliant under the "administrative simplification rules" of the federal Health Insurance Portability and Accountability Act (HIPAA). The Bush Administration is currently proposing to eliminate HIPAA's requirement to get your consent to release your medical records to "key players" in order to "facilitate" your treatment.

Patient advocates fear that the government's definition of "key players" includes not only your doctor and your health plan, but also your employer, insurer, bank, and pharmacy, as well as drug marketers and medical data warehouses. There is also concern that insurance or viatical companies may sign up to access such a database to find out information about your past claims or applications and use that information to either deny you products, or to charge you higher premiums

A life or viatical settlement is the sale of a life insurance policy to a third party. The owner of the policy sells it for a percentage of the death benefit. The buyer becomes the new owner and/or beneficiary of the life insurance policy, pays all future premiums, and collects the entire death benefit when the insured dies.


Source: Insure.com

Life Settlement Pro is Released

RTG is proud to be affliated with Life Settlement Pro. They just released their fully functional life settlement and viatical settlement resource and information request site. The full URL is:

http://www.LifeSettlementPro.com/

The Life Settlement Professionals will over free policy evaulations, free consulations, free appraisals and more. They work hard to find the highest value for your life insurance policy.

The information they provide on their website are: Life Settlements, Viatical Settlements, Life Insurance Settlements, Senior Settlements, The Life Settlement Process, Recent Cases, Life Settlement Broker, and Viatical Broker.

If you have questions about any of our services you can contact Life Settlement Pro or call us toll free at 1-888-973-8377.

Till next time, have a blessed day...

Selling a life insurance policy

The uses for the proceeds of a settlement transaction are as varied as the changing needs and wants of consumers. However, the conditions under which a life settlement opportunity is most likely to make sense are fairly easy to identify. The following is a partial listing of the situations in which you may find that the life insurance settlement option represents a meaningful alternative:

1. When a Policy Owner no longer needs coverage.

2. When a change in business ownership makes a policy obsolete.

3. When a Key Person leaves the company, making the policy unnecessary.

4. When premium payments have become burdensome.

5. When a change of policy type is required to address current objectives.

6. When the Policy Owner wishes to give the policy to a nonprofit organization.

7. When changes in tax laws make trust-owned policies unnecessary.

8. When a Policy Owner needs to raise cash for other purposes.

9. When a business fails and a resulting bankruptcy requires that assets be liquidated.

10. When a nonprofit organization owns a policy insuring the life of a board member, key donor, or other benefactor, but the donor no longer wants to contribute funds to pay premiums.

Reverse Mortgage good and bad points

Reverse mortgages have helped thousands of seniors increase their retirement income and pay off debts.

While only a small minority of eligible seniors have used a reverse mortgage, I believe we'll see the use of these products explode as baby boomers enter retirement.

Unlike a traditional mortgage, a reverse mortgage requires no monthly payments. Equity in a home can be paid out as a monthly income, taken as a lump sum or withdrawn as needed. Interest is charged each month and deducted from the home equity balance.

The most common reverse mortgage is the federally insured Home Equity Conversion Mortgage.

This mortgage guarantees a retiree can remain in his or her home until he or she dies or moves out. Any remaining equity in the home is the retiree's or his or her heirs. The lender gets none.

Reverse mortgages do have some drawbacks. First of all, they are not cheap.

The interest charged is comparable to a traditional mortgage, but the start-up costs are steep, in part to insure the loan. In addition, all persons on the title must be at least 62 or older.

To learn more, call AARP at (800) 209-8085 and request the booklet "Home Made Money" or visit www.aarp.org/money/revmort.

Reverse Mortgage Questions

I have been getting a handful of pretty detailed questions regarding reverese mortgages, the reverse mortgage process, HUD counseling, and other related question.

Some of these questions require a good amount of detail and might be different for your personal situation. I do not have a problem emailing a response, but usually it is harder to understand and just leads to a phone call or more questions.

We came up with a solution... Call us toll free! That is right, we setup a toll free number where we would be glad to answer questions, explain the programs, run free quotes, or just say hello. The number is 1-888-973-8377 or the easier version is 1-888-9REVERSE.

Right down the number before you forget it.

Till next time, have a blessed day..

Life Settlement Qualifications

Here are a list of some basic life settlement qualifications. Please remember that each case is looked at differently, please contact us toll free 1-888-973-8377 to discuss your personal situation or answer and questions.

* Policy Face Value of over $100,000- no maximum face value
* Insured must be terminal with a life expectancy of 12 years or less.
* No medical exam
* We determine the life expectancy when we obtain the medical records of the insured. Once we review it, two independent third parties determine the life expectancy of the insured.
* There can be variances in the estimated life expectancy and this can lead to different offers from different funding companies. That is why we negotiate with every funding source.
* Must be a change in health status since the issue of the policy
* Age must be over 60, however typically clients are over the age of 74.

Please take a minute or two to fill out our free online life settlement quote form, we will be able so to see if you qualify, and find out how much your payment could be.

Viatical and Life Settlement Benefits

Both Viaticals and Life Settlements allows policyholders to tap into the potential money in their life insurance policy. The benefits compared to accelerated death benefits are numerous. The first being that ADB's are only available in almost all cases for individuals who have a life expectancy of less than one year. In the event you have two years to live and cannot afford your life insurance, ADB's provide no help. Also if you do qualify and you want ADB's because of a poor current financial situation, you will still need to make premium payments on the life insurance policy. On the other hand a viatical provides up to 85% of the face value of a life insurance policy and also eliminates any future premium payments. Also to take part in a settlement you can have a life expectancy of up to 5 years (life settlements up to 9 years). The most important aspect of a viatical settlement is that you receive the lump sum cash settlement amount tax free. The living benefits of viaticals are endless and they can help people now when they need it the most.

Pleaes fill out our free viatical and life settlement quote form to see how much you could receive for your policy.

Life Settlement Companies

Viatical and life settlement contracts enable you to sell your life insurance to a third party in exchange for a reduced amount of the face value. The amount you receive depends on your age, health, death benefit, and number of years your policy has been in force.

The viatical business began in 1989 as a way to give terminally ill AIDS patients early access to their life insurance, but has expanded to include policyholders suffering from cancer, heart disease, or other life-threatening illnesses, or as life settlements for policy holders who longer want a particular policy. Today, some viatical companies unabashedly target people who may simply have high blood pressure and carry hefty death benefits.

In addition, life settlements are being offered as a way to use insurance you may no longer need for estate planning or family protection, as a way to get a return larger than the cash value of the policy.

There are many legitimate viatical and life settlement companies. But, unfortunately, there are also viatical scam operators urging people to liquidate their life insurance without explaining the implications, as well as life settlement companies who do not follow state guidelines. Be careful in selling your life insurance policy.

Know your options

If you're thinking of buying a viatical or life settlement you should:

* Understand the details and the risks before deciding.
* Consult your own professional financial advisor who knows your personal financial circumstances, investment objectives, age, and other considerations. You may want to consider other investment choices.
* Ask your tax advisor about any possible tax consequences of buying a viatical settlement. Find out if it's appropriate to use 401(k), IRA, Keogh, or other qualified retirement plan funds to buy a viatical settlement.

Courtesy of Insure.com

Feel free to contact us at 1-888-973-8377 to discuss your potential life settlement situation.

Enhancing your retirement years

A reverse mortgage is a retirement enhancing tool

The funds from a reverse mortgage can be used for anything: daily living expenses; home repairs or modifications; health care expenses, including prescription drugs or in-home care; pay-off of existing debts; lifestyle enhancement; vacations; purchase of long term care insurance; and other needs.

There are no income or medical requirements to qualify. You may be eligible for a reverse mortgage even if you still owe money on a first or second mortgage.

FTC Reverse Mortgage Article

Reverse Mortgages — Cashing In On Home Ownership

This is a wonder article released by the FTC (Federal Trade Commission). It includes reverse mortgage basics and facts, how reverse mortgages work, reverse mortgage safegaurds, and US government resources.

Quality information for an extremely reliable source.

Full URL is:
http://www.rtgconsultants.com/reverse-articles/cashingin.html

Until next time, have a blessed day..

Life Settlement Case Study 2

Life Settlement Case History 1
Strategy to Purchase a New Policy for Spouse

Profile : Female age 82 and Male age 83 without any substantial health issues.
Type of Insurance: Joint Survivorship
Death Benefit: $6,000,000
Premium: $145,000/Annually
Surrender Value: $105,000

Issue : The client over funded the policy at first, but the policy is now running out of cash value to maintain the policy for the upcoming year. The advisor understands the clients' need for insurances, and suggested a life settlement. Because of the clients' current financial plan, the cash settlement will be reallocated to another area of their wealth management plan.

Client sold the policy for $755,000, creating an additional $650,000 for the families charitable planning. The client referred other families that had similar circumstances and lacked the strategy to develop their own charitable giving plan.

Gain to the Client : Policy owner was able to use the cash settlement to provide funds for charitable giving, and to establish a charitable remainder trust for their family.

This life settlement case study is just one example of how life settlements can be a beneficial financial planning tool.

Home Equity Reverse Mortgages Succeed

The Home Equity Conversion Mortgage (HECM) insurance program, created in 1987 under the National Housing Act, is designed to provide elderly homeowners with a financial vehicle to tap the equity in their homes without selling or moving. The loan became known as a reverse mortgage because the lender makes payments to the homeowner, which is the reverse of the payment pattern of traditional mortgages. Reverse mortgages are intended to help house-rich but cash-poor seniors access additional income to meet expenses and to help elderly, middle-income homeowners convert their home equity into liquid assets.

The Federal Housing Administration (FHA) insures HECM loans originated by FHA-approved lenders to protect the lenders against loss if amounts withdrawn exceed ultimate equity when the property is sold. The FHA insurance also protects borrowers with a guarantee to make any payments lenders fail to make to the borrower.

A new report, "No Place Like Home: A Report to Congress on FHA's Home Equity Conversion Mortgage Program", provides an evaluation of the HECM program. This report is the last in a series of mandatory reports to Congress on the demonstration phase of the HECM program, which became a permanent HUD program in 1998.

The report finds that the demonstration phase of HECM has been a general success, with loan volumes growing, borrowers reporting high levels of satisfaction with the program, premium collections projected to exceed insurance claims by more than $500 per loan, and a trend toward lower average costs paid by borrowers to originate a HECM loan.

Nevertheless, the report indicates that several factors could increase HECM loan volumes. Future HECM volumes could grow if overall loan costs continue to decline, FHA loan limits are increased, and the public's awareness of the program is raised. The combination of lower costs, higher loan limits, and increased awareness might encourage more older homeowners to apply.

"No Place Like Home: A Report to Congress on FHA's Home Equity Conversion Mortgage Program" is available free from HUD USER: 1-800-245-2691. If you are interested in a reverse mortgage, beware of scam artists that charge thousands of dollars for information that is free from HUD.

Reverse Equity Mortgage

Reverse Equity Mortgages

Criteria

- Must be 62 years old or older (all owners)
- Must get counseling prior to loan approval
- Must live in the home
- Home does not necessarily have to be free and clear (it may have other liens)

Reverse Equity Mortgage Counseling

You will meet one-on-one with a counselor to discuss criteria to qualify for the program. The counselor will review approximately how much you may borrow from the program. You will discuss the different means of attaining the money, costs attached to the program, and the process to follow. A counselor can also assist with finding other options available.

You should know what the mortgage balance is on the home and any other liens attached to the property. You must qualify for enough funds through a reverse mortgage loan to pay off any existing loan balance, liens, etc.

How to Make an Appointment

To schedule an appointment, contact RTG Consultants. RTG is a HUD approved reverse mortgage equity lender affliate. We can also be reached toll free at 1-888-973-8377 with any questions.

Life Settlement Case Study 1

Life Settlement Case History 1
Strategy to Purchase a New Policy for Spouse

Profile: Male age 74 in moderate health.
Type of Insurance: Universal Life
Death Benefit: $1,500,000
Premium: $42,000/Annually
Surrender Value: $38,000

Issue : The client maintained this policy for estate purposes but the premiums that were supposed to “vanish” by this time hadn't for reasons outside his control. Before he surrendered the policy for the Cash Surrender Value, his advisor recommended that he learned what the fair market value was for his policy. The advisor explained that just like other business markets, a new market has developed in the financial services industry, and there was a simple process to assess his current life insurance.

Client sold the policy for $225,000, creating an additional $187,000 that he would not have received if he had not participated in this non-binding policy appraisal.

Gain to the Client : Policy owner was able to use the proceeds to fund the remaining policies he had in force and purchase a new $1,000,000 policy on his wife for their heirs.

This life settlement case study is just one example of how life settlements can be a beneficial financial planning tool.

Maximum life insurance value

Received a life settlement question last night, so I decided to post it here.

Am I getting the maximum value from my life insurance policy?

Regrettably, life insurance is often an underutilized resource. Statistics show that 90% of all life insurance policies lapse or are surrendered because of non-payment, due mainly to rising costs. Policies that do manage to stay in force are often under-performers or no longer needed. Especially problematic are universal life policies written since the 1980s. These policies often fail to meet expectations because of the rate of interest at which they were written. In some cases, the premiums did not “disappear” as had been projected; leaving seniors with unplanned expenses. For these and other reasons, many people are losing out on their policy’s accumulated value—don’t be one of them. A life settlement can be a highly beneficial solution.

Till next time, have a blessed day..

Fannie Mae HomeKeeper

• Available for homeowners 62 and older
• Must be homeowner's principal residence.
• 1-4 family units is acceptable (provided borrower lives in one unit)
• A monthly service fee is added to the loan
• Counseling is required by an HUD/FHA approved housing counselor
• Most flexible reverse mortgage program in the market place.
• Maximum lending limit: $290,319 to $160,176 depending upon county as of 1/2004
• Federally insured
• Adjustable Rate Loan based on one-year T-Bill plus a margin
• Loan origination and closing costs can be financed in the loan
• Loan Proceeds are tax-free
• Allows Borrower to customize the program to fit their needs
• Benefits can be received as line of credit, lump sum, monthly payment or combination as long as one of the borrowers remains in the home
• Line of credit balance grows
• Social Security or Medicare eligibility is not affected. There is some limitation with SSI or Medicaid/Medical.
• No debt to the heirs - home stands for debt
• Fee collected up front is refunded at closing
• No credit qualification
• No income qualification
• No repayment is required until the last surviving borrower moves, sells or dies.

Senior Life Settlements

Senior Life Settlements

For Millions of life insurance policyholders, the purpose and value of their life insurance policy has changed in recent years. While they may have originally purchased the policy to provide for a beneficiary after their death, they now find that through the sale of their policy, the policy can be easily converted into cash or a series of cash payments. Senior life settlements can provide this cash payment.

The sale of an existing life insurance policy at a discount from the face value transforms what is often seen as a future asset, or a risk management tool for business, into a resource that can and should be managed as part of an overall financial plan.

A senior life settlement transaction can play a key role in the structuring of a financial plan that utilizes available investments and asset transfer options to maximize wealth. As senior life settlement transactions become more integrated into comprehensive estate and financial plans, policyholders will see greater value from their life insurance policies and begin to realize their goals more effectively.

Please contact us to discuss your senior life settlment situation.

Reverse Mortgage AARP

Reverse Mortgage AARP

The AARP Website features a section devoted to helping visitors unravel this process. The site is a valuable, objective, resource for reverse mortgage information, featuring a comprehensive guide that walks visitors through the process’s basics. This section can help readers to understand how reverse mortgages work, compare reverse mortgage providers, and decide whether a reverse mortgage is right for them. The guide’s contents include:

- Understanding Reverse Mortgages explains the differences between reverse mortgages and other types of financing, including “forward mortgages.” The section lays out the various payment options that reverse mortgage borrowers can receive.

- Shopping for Reverse Mortgages provides guidelines to evaluate whether a reverse mortgage is the best solution to an individual’s financial needs. It examines three types of reverse mortgages—single-purpose, federally insured, and proprietary--and includes charts displaying the benefits and drawbacks of each.

- Comparing Reverse Mortgages summarizes the costs vs. benefits of the different types of reverse mortgages, including tables that show how different types of reverse mortgages affect a home’s equity.

- Reverse Mortgage Borrower Decisions outlines the downsides of this financial decision--a loan with "rising debt and falling equity," in which seniors accumulate debt while drawing value from their homes leaves less money for their heirs. The section also lists alternatives to reverse mortgages.

Contact Reverse Mortgage AARP for more information.

Reverse Mortgage Loans for Senior Homeowners

If you're a Senior Citizen and own your home, here is a safe and easy way to receive income from the equity you've built up in your home. We make it fast and easy for you to apply for a Reverse Mortgage Loan. Our loan specialists will guide you through the process.

Reverse Mortgages are safe because they are regulated and insured by the U.S. Government. In fact, Reverse Mortgage Loans (HECM) were created and designed by the U.S. Government to assist qualified seniors in maintaining their independence.

Your Reverse Mortgage Loan can be set up to provide monthly income to supplement your Social Security and retirement income. Best of all, you won't have to make any monthly payments! You can use your home equity to supplement your income, eliminate your house payment, pay for home repairs and maintenance, or pay off credit cards, household and medical bills.

A Reverse Mortgage Loan can give you the freedom to purchase long-term health insurance, set up a line of credit for unexpected expenses, buy a new car, pay for a vacation - or even help a grandchild with college expenses.