June 2010, Volume 4, Issue 5 |
Exploring the life settlement option for clients |
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By Linda Koco - Stranger-originated annuity transactions have stirred up the ire of professionals in the life settlement and life insurance businesses as well as from the fixed and variable annuity businesses, broker-dealers and more. For example, several trade groups condemned the transactions during a May hearing held by the Life Insurance and Annuities Committee of the National Association of Insurance Commissioners, Kansas City, Mo. Analysis of other written testimony submitted at the hearing reveals that other industry leaders also ripped into the transactions, but not without differences in perspective and…
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Question: My client would like to use a life settlement to help pay the assisted living expenses for her mother, who is alert but frail and needs the care the community provides. The mother is the owner and insured of a $250,000 UL in-force policy, but the daughter (my client) has power of attorney for her mother's financial affairs. Is a life settlement the best option in this situation and how do you recommend I proceed?
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An index of life settlement activity recently showed that, in comparison to the previous month, life settlement activity in May 2010 was:
a) Down dramatically
b) Down a little
c) About the same
d) Up a little
e) Showing robust growth
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two consecutive months
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