Opulen Capital Life Settlement: Clearing The Air

The ghoul pool, betting on death, trolling for seniors. Since its inception, the life settlements industry has fought long and hard to overcome misconceptions that have in some cases nearly crippled the industry. However, regulations and strict business practices have gone a long way to dispelling any unseemly rumors and creating more consumer confidence in what has become a sound investment strategy.

Still, rumors exist. Here are a few of the most common misconceptions about the life settlement industry.

Anyone can take out a life insurance policy on a stranger, then sell it on the open market. Not true. In fact, the practice of stranger-owned life insurance (STOLI) has been illegal for some time now. So has the practice of spinning policies, where investors pay seniors to purchase life insurance that is then sold to life settlements markets.

The market is unregulated and risky. False. The market is tightly regulated, following closely the regulatory framework of insurance and financial markets. More than 34 states now have strict regulations for the business of life settlements with over a half-dozen more states with legislation pending. With more emphasis on the investment value of the life settlements market, more legislation is sure to follow.

Only wealthy people can take advantage of life settlements markets. Not true. The life settlements market is open to anyone with a life insurance policy valued at $50,000 or more. The wealth of the owner is of no consequence.

My life insurance policy probably isn’t eligible for the life settlements market. You’d be surprised how many types of policies are suitable for a life settlements arrangement. Whole life, universal life, variable life and yes, even some term life policies are being bought and sold every day in life settlement deals. A life settlements broker can guide you through your policy terms and help you determine if your policy qualifies.

Investors will have access to my personal information. Absolutely not. Investors buy pools of policies with life expectancy figures, premium rates, and insured age brackets – never names, addresses or any identifiable information beyond the generic age, sex, and general state of health. Policies never go into the hands of the investors – rather, they are held by trustees of the pools in which investors are members. Confidentiality is guaranteed.

I’m not sick, so I can’t sell my policy. While life settlements did gain momentum around viatical settlements – deals that allowed terminally ill patients to sell their policies in order to receive necessary funds for treatment – the industry has evolved well beyond that. Most sellers of life insurance policies are healthy seniors. They sell because they no longer need the policy or can no longer afford the premiums.

Surrendering the policy is a better option. Far from it. Surrender values are often much lower than life settlement offers. Life settlement buyers typically offer somewhere less than the death benefit but more than the surrender value. In some cases, policy holders can expect to receive 300 percent more than their policy’s stated surrender value.

Opulen Capital’s mission is to continue to provide the best solutions for our clients through the highest level of integrity and service. The strength of our business is our commitment to improve our client’s financial net worth. For more information on whether your policy qualifies for a life settlement arrangement, contact us at 877-678-5361 or visit http://www.OpulenCapital.com.