What You Need to Know About Life Expectancy Estimates

Life expectancy estimates are used by life insurance companies and other organizations in various ways. The Life Settlement market relies heavily on this type of data to ensure the health of their portfolios. Let’s take a look at how life expectancy estimates are created, and what they include. How Life Expectancy Estimates are Calculated Life Expectancy (LE) estimates take a number of factors into [...]

Take the TOLI Challenge: Only Permanent Life Insurance Policies Can Be Sold, True or False?

Updated 6/29/2020, originally posted 4/19 Previously, we started the TOLI Challenge with the question: What is most important when determining the liability of a trustee’s actions? Click here for that answer.  Today, we have a follow up true or false question.   Only permanent life insurance policies can be sold in the life settlement market, True or False? It may surprise you that the answer [...]

Upcoming Webinar June 10th – A Trustee’s Guide to Life Settlements

Life settlements are confusing, at best.  That confusion can make you uncomfortable.  So much so that you allow a client to surrender or lapse a policy without exploring the option.  That would be a mistake – one that could cost the client money and put you in hot water.  It’s hard to move ahead if you do not know how.  We understand that, just [...]

Early Excess Mortality in Life Settlements on Par with COVID-19 Projections

In this post we estimate an “equal-risk” projection of COVID-19 mortality within life settlements using the geographic overlap of COVID-19 deaths with life settlement insureds.  By comparing this equal-risk rate to observed data, we estimate a net mortality risk factor of 6-12x for the life settlements population.  This is on par with a simple age-weighted projection of mortality and suggests socio-economic advantages may have [...]

Is Life Settlements Population at Greater Risk Due to COVID-19 Comorbidities?

In this post, we investigate how the unique comorbidity profile among life settlements lives may impact outcomes due to COVID-19. Our analysis concluded that life settlements likely represents a higher risk comorbidity profile than either the U.S. adult or senior populations. Due to correlations with age, we could not conclude whether this increased vulnerability extends the vulnerability due to age alone as presented in [...]

What do Obituaries Reveal About COVID-19 Mortality?

In this post, we look at whether COVID-19 has had an impact on the number of obituaries being reported, as they are a critical source of death data. Note that the charts in this post are interactive. PBI Research Services , a subsidiary of Longevity Holdings LLC , is a national leader in death auditing and mortality tracking. Their mortality data is captured from [...]

The Impact of COVID-19 on the Life Settlements Population

It is now widely accepted that COVID-19 (Coronavirus Disease 2019) will have a broad, lasting impact around the globe, and in the U.S. in particular.  The magnitude of that impact is still unknown, but that there will be a measurable impact has become indisputable.  The life settlements population represents a unique cohort of individuals who may experience greater vulnerability to COVID-19 than the broader [...]

TOLI Trustee Alert: The Taxation of a Life Settlement Policy Sale

Updated 1/29/2020, originally posted 10/26/18 In our last two blogs, we discussed when and how to sell a life insurance policy.  In this blog entry, we want to talk about the taxation of a life insurance policy sale for the seller. The death benefit of a life insurance held in trust is received free of both estate and income taxes, however, if a TOLI [...]

TOLI Trustee Alert: Life Settlements – How to Sell a Policy

Updated 1/22/2020 Originally posted 10/19/2018 In our last blog, we tackled the question of when to sell a life insurance policy.  With the changes in the estate tax laws and the aging of the population in the typical TOLI portfolio, life settlements will become more prominent in the coming years, and the TOLI trustee must become aware of the sales process, so we wanted to [...]

TOLI Trustee Alert: Life Settlements – When Should You Sell a TOLI Policy?

Updated 1/16/2020, originally posted 10/12/2018 It is estimated that over 100 billion dollars in life insurance benefits are surrendered each year by older aged citizens in the US. (1)  Unfortunately, the typical senior probably does not understand the life settlement market and the opportunity to maximize the value of an asset that many let lapse valueless after a lifetime of premium payments. Today’s TOLI trustee [...]

2020-01-16T15:27:57-06:00January 16th, 2020|General Interest, Life Settlements|0 Comments
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