Short Takes
Age inevitably decreases our ability to connect with the world outside of ourselves because of physiological deterioration. Hearing and vision decline, as do the rest of our biological systems. When advisors fail to recognize this deterioration and...
As the life settlement industry earns its way into the mainstream of insurance solutions available to high-net-worth seniors, insurance producers are examining strategies to capture their share of this rapidly expanding marketplace. Two common...
The life settlement industry has doubled over the past five years. Not surprisingly, this rapid growth has spawned a plethora of individuals and companies proposing to negotiate life settlements on a client’s behalf. Beware: This is not a...
Many aspects of the sale of life insurance contracts have clearly defined tax treatment under the tax code, tax regulations, and case law. Some important aspects of the transaction, however, have not been settled or fully court tested. What is clear...
In the early days of the life settlement industry, when it focused more on viaticals than life settlements, talk of pitfalls and scams was more relevant than it is today. At that time, there were some bad actors who preyed on the general lack of...
You may know a producer who has handled a life settlement and told you what a great deal it was for their clients and how they received an excellent commission. You may think it sounds too good to be true, remembering the bad press you read about...
The Life Insurance Settlement Association (LISA) was founded in 1995 as a nonprofit trade association for members of the viatical and life settlement industry, associated businesses, and consumers. In January 2006, the association changed its name...
Life Settlement Transactions Now More Mainstream, Secure The business of life insurance settlements has a colorful history. It has become a multibillion-dollar industry in just over a decade. What’s undeniable is that the business has...
The results of an exclusive Agent’s Sales Journal survey revealed some facts that might surprise industry observers: More agents would offer life settlements if they had a better understanding of the product. Life settlements are not...
Any financial advisor working with retirees will invariably be asked about pension distributions. The questions could be about choosing a distribution option, the tax treatment of distributions, rollovers, or the minimum distribution rules. Here is...
A generation ago, the average life expectancy in the U.S. was about 72 years, according to the Census Bureau. Today, due to advances in medicine, diet and lifestyle, the average American can expect to live 10 years longer. Actuaries predict this...
Although retirement is a priority for 48 percent of adults 65 and older, their financial goals also include planning for the future. According to a 2005 Vertis study, 57 percent of respondents 65 and older consider balancing a monthly budget a...
The number of older Americans is increasing at a rate three times faster than all other age groups. According to estimates by the Congressional Budget Office, mature consumers account for $800 billion in assets and spend $160 billion a year on...
Seniors are the single best large market for financial advisors. There are 44 million Americans over age 60, representing about 16 percent of the U.S. population, and they hold well over half of the investable assets in this country. Therefore, each...
If you were asked to name the perfect client, most financial advisors would agree that it’s the senior client. They are punctual, loyal, pay their bills on time, do what they say they are going to do, and they tell their friends about you. And...
Older adults don’t always comprehend logical, linear reasoning because they mis-hear what is said, take in only parts of it, or do not fully understand the concepts. There are three types of techniques for helping customers overcome mental...
The senior market specialty has grown exponentially over the last 10 years. If you choose to serve this population, you will have to become a specialist. Here are the top five truths about serving the senior market: 1. If you deal with people...
The senior market is a very appealing target group for many financial and insurance programs. Not only do seniors have billions of dollars in buying power, they also are living longer and leading more active lives, and they are in greater need of...
Everyone has preconceived notions about seniors as a group. Well, it may be time to throw those notions out the window. Consider these far-from-average seniors: Pop music icons Simon and Garfunkel turn 65 this year, while one-time sexpots...
New rules effective May 2, 2006 As part of its ongoing program to fight terrorism and other illegal activities, the U.S. Treasury Department released new anti-money-laundering (AML) rules that go into effect on May 2, 2006. These rules require...
American International Group Inc. (AIG), the country’s largest insurance company, may shell out as much as $1.5 billion in order to settle civil investigations by state and federal authorities into an accounting scandal, according to a Wall...
The youngest members of the baby boomer generation (ages 40 to 45) have more sophisticated financial needs than their older counterparts. A higher percentage of affluent younger boomers, for example, hold hedge funds, private equity, and futures...
Authorities say the president of a small North Carolina insurance agency is accused of shooting his two partners in a January business dispute. According to an account in the Jan. 3, 2006 Asheville Citizen-Times, James T. Tedesco, 37, was charged...
Mark your calendar. The National LTCi Producers Summit, the nation’s leading conference focused on the marketing and sales of long term care insurance, will be held November 5-7, 2006 at the Hilton Hotel in Austin, TX. The conference, which...
IBM Corp. announced that it will freeze the pension plans of some 120,000 U.S. employees at the end of next year and will offer what they say is a more generous 401(k) plan. The freeze means that benefits earned by current workers up to Jan. 1, 2008...