Life Settlements

Through our strategic alliance with The Ashar Group, LLC, Algren Associates helps our producers fascilitate the sale of existing policies in the secondary market.  We have joined forces with Ashar due to their integrity, knowledge, and relationship with all major funders.

As the market for Life Settlements has grown, so too, have the reasons for seeking a Life Settlement.
The minimum requirements for a life settlement generally are as follows:

• Individuals 65 years of age or older
• A life insurance policy from $250,000 to $100 million
• Change in circumstances since the policy was issued
• Life expectancy from 25 months to 20 years
• Policy must be beyond the 2-year contestability period

If a client meets these minimum requirements, then the reasons for choosing a Life Settlement must be considered.

• Universal
• Term
• Whole Life
• Joint/Survivorship
• Variable Life
• Group

Below is a simple summary of some of the most common reasons a policyowner may wish to obtain a Life Settlement. These can be grouped under changes to:

Life Insurance Needs

• Premiums too costly
• Beneficiaries no longer living
• Funeral expenses no longer an issue
• Debts have been eliminated
• Replacement policy is desired (with reduced premiums, different coverage or both)
• Current economy requires changes in retirement planning
• Other family concerns

Financial Situation

• Policyowner has long-term care or other medical needs
• Policyowner wants to meet assisted living care expenses
• Policyowner has an emergency need
• Policyowner wants to eliminate debts

Financial Priorities

• Policyowner wishes to make gifts to family members while still living
• Policyowner wishes to make gifts to charities
• Policyowner wishes to make other investments
• Policyowner wishes to purchase a vacation or retirement home
• Policyowner simply wishes to use the funds for other purposes (vacations, etc.)

Estate Planning

• Estate tax laws have changed
• Estate has become more liquid
• Estate has become less liquid
• Other insurance options more in line with estate’s long-range goals

Business Insurance Needs

• Business has been sold or liquidated or is up for sale
• Insured no longer a “key” employee involved in day-to-day running of business
• Policies no longer needed to fund deferred compensation packages
• Policyowner may require funds to buy our partner’s interest

This list is intended as a general guide only. There can be many reasons to seek a life settlement. For questions concerning Life Settlements or assistance in submitting an application, contact Algren Associates, Inc.