Life Insurance Settlement Association White Paper
Life Insurance Settlement Association Announces the Release of the Organization’s First White Paper
ORLANDO, FL — (MARKET WIRE) — August 23, 2006 — The Life Insurance Settlement Association (LISA) today announced the release of a white paper entitled “Cashing in on Unneeded Life Insurance Policies: How Seniors Are Benefiting from Life Settlements.” The 16-page document provides an overview of the industry, an explanation of the life settlement product along with case scenarios illustrating the advantages of a life settlement for qualifying seniors. The white paper was produced in response to requests for information from consumers, regulators, news media and others who are seeking reliable information on the rapidly-growing $10 billion life settlement industry.
“As we approach life insurance awareness month in September, it is important that senior consumers also have an awareness of the life settlement option because it provides a sensible exit strategy from unwanted life insurance policies,” said Doug Head, executive director of LISA. “A life settlement maximizes the value of one’s life insurance asset because it enables those who qualify to receive a cash payment from an institutional money source for an amount greater than the cash surrender. It is the hidden value in life insurance policies that we want the public to discover,” Head added.
The white paper points out that prior to the emergence of the secondary market for life insurance, senior consumers with unwanted policies on the verge of lapse or surrender had no other options. With the emergence of the secondary market for life insurance where institutional investors purchase policies, seniors are now receiving an average of three to four times the cash surrender value. Industry statistics indicate that within the past five years, senior consumers have received more than $2 billion in excess of their policies’ cash surrender values. Other industry statistics indicate that approximately 40 to 50 percent of seniors are using the proceeds from the cash settlement to purchase better-performing policies with lower premium payments.
For immediate access to the white paper, go to: http://www.lisassociation.org/files/LISA_whitepaper.pdf
About LISA
The Life Insurance Settlement Association, known as “the voice of the industry,” is located in Orlando, Florida. A Florida-based non-profit association founded in 1995, LISA serves as a national resource center, providing information about life settlements. LISA, which currently has over 100 member companies, is the industry’s largest and oldest trade and professional organization in the life settlement industry. For more information, visit www.lisassociation.org.
