Opulen Capital Life Settlement: Tug Of War

The struggle between the life settlements market and the life insurance industry is understandable. Life insurance companies see an upsurge in the amount of policies claiming death benefits as a result of policy holders selling their life insurance policy to the life settlements market. What once may have been a lapsed policy or a surrendered policy now demands payment on the full death benefit.

While the life insurance industry does not state specifically their reasons for opposing the life settlements market, a few have come out publicly in opposition of the life settlements industry. One company points out the alternatives to policy holders considering life settlements arrangements: borrowing against the cash value, utilizing the policy as collateral for a bank loan, or optional riders that can allow the policy holder access to the cash value should he or she be stricken with a terminal illness.

And while these are options for some, not everyone’s situation can be solved by these methods. For policy holders whose life insurance policies are about to lapse, a life settlements agreement could be the only option. Likewise the policy holder whose beneficiaries are deceased and there are no other alternatives. And in some cases, policy holders buy life insurance for a specific reason. If that reason has been satisfied, the policy may no longer be needed and a life settlement arrangement could be an option.

In a number of cases, the life settlements market is not an option for policy holders. Life settlements requirements include: 

·       The policy face value must be at least $50,000

·       Policy holders age should be 70 years or more and be in good health (some exceptions apply)

·       The surrender value must be low (talk to Opulen for specific minimum surrender value requirements)

·       The policy has to have been in force for at least two years

·       The premiums paid must amount to less than 8 percent annually

For a number of years, the life insurance industry has contended that the life settlements industry is unstable and unregulated. To the contrary, many states are now voting to include the life settlements market under their state regulatory oversight, lending more credence to the market’s stability and viability. While the industry did suffer from the emergence of stranger-owned life insurance settlements (or STOLIs) in the past, the prohibition of such deals ended the practice of buying insurance to cover a third party with the sole intent of selling that policy on the open market.

Obviously, each situation offers pros and cons depending on the policy holder and his or her unique set of circumstances. Opulen’s team of experts can help you determine if your policy or your life position is one that is conducive to the life settlements markets. As skilled financial consultants, we can walk you through your choices and help you determine if a life settlement is right for you.

Located in La Jolla, California, Opulen Capital is a specialized financial services firm focusing on products and services tailored for senior citizens. Opulen Capital is one of the leading firms offering Life Settlement opportunities for high net worth clientele. We leverage unrivaled experience and exclusive relationships in the life settlement marketplace to structure, obtain, and sell life insurance products to maximize cash profits for our valued clients. Opulen Capital’s mission is to continue to provide the best solutions for our clients through the highest level of integrity and service. For more information, visit our website at http://www.OpulenCapital.com or call Opulen at 877-OPULEN-1 (877-678-5361)