|Copyright:||Copyright Business Wire 2010|
|Source:||Business Wire, Inc.|
“This represents a huge victory for consumers and a major validation for the life settlement industry,” said Wm.
The model act requires insurers to notify people who are 60 or older, or who are chronically ill, of alternatives to lapsing or surrendering their policies, including such options as accelerated death benefits and life settlements.
A life settlement is the sale of an existing life insurance policy, by an elderly policyholder, for more than the current cash surrender value. A settlement is a unique alternative to surrendering a policy or letting it lapse and can be offered on term, whole or universal life policies. Money from a settlement can be used to pay for any expense, from paying for a grandchild’s education to funding a long-term care insurance policy.
“This new regulation will immediately assist the thousands of seniors who would otherwise allow life insurance policies to lapse without knowing all of their options,” said Page. “And it opens the door to a new and innovative way to help fund retirement.”
It has been predicted that 2011 will mark the year that the largest number of baby boomers face retirement. This group is actively looking for new financial options, and life settlements will play a key part in future retirement planning.
The Lifeline Program is a life settlement provider based in
Source: The Lifeline Program