How to leverage your insurability? - Life Settlement and Premium Finance

New York, NY May 2008. Senior citizen becomes more and more educated when it comes to their retirement income.

With advance in medicine and technology, mortality tables have been change dramatically in recent years. At the bottom line, we live longer. For some of us, this is much longer than they expected. If 20 years ago a 65 years old retiree thought he’ll live till the age of 83 or so, now days he more likely to reach the age of 87 .

In some cases these senior citizens need more supplemental cash in order to maintain their standard of living. Since they do not want to liquidate any tangible assets they have.

Today, few financial tools can help these senior by leveraging their insurability.

In this article I’ll spread information about two ways seniors can tap into cash that in most cases they did not know they have.

The first method is Life Settlement or Senior Settlement where an old life insurance policy is being sold on the secondary market and leaves the insured with lump sum of cash. However, no insurance coverage is now protecting the senior. In order to qualify for a life settlement, the insured must posses a policy that is out of contestability and has a death benefit of minimum $250,000. However, some providers will buy a policy that is less than $250,000 , some other criteria has to do with the insured age (65 and above) ,life expectancy (2-12 years) , premium on the policy (less than 5% of death benefit) and cash surrender value not to be more than 30% of the death benefit.

If all parameters fit the buyer’s criteria, an average of 20% of the face value will be paid to the insured as a life settlement less any commission paid to the agent (Broker) who handles the case. Results may vary from case to case.

The second method is Life Insurance Premium Finance. Each and every one of us have hidden asset called insurability. Our insurability allows people to obtain life insurance up to their net worth which all we have minus what we owe. For example a 77 male who’s house worth $1,200,000 and has a vacation home that worth $500,000 plus some stock and pension may have a net worth of $2,000,000 to $2,500,000. What it means is that that person has insurability of $2,500,000 assume no life insurance is in force.

Using the premium program will allow the insured to obtain a loan to finance the premium on the policy. The insured will assign the policy as collateral for the loan plus a personal guarantee equal to 25% of the loan. After the loan is mature (usually 2-5 years)

The insured will have to decide what to do. At that point the insured will have few options:
The first is to pay the loan plus interest and assume full responsibility for future premium. 2^nd option will be to renew the loan for another period and to assign more personal guarantee. 3^rd option will be to sell the policy on the secondary market as a life settlement.

if choosing the life settlement option, the following numbers should be considered :
$2,500,000 life insurance policy on a 77 years old male will generate an annual premium of around $125,000 plus interest and fees .
After 2 years the total loan can reach the amount of $300,000. With a settlement offer of 20% of the face value the amount will be $500,000.
After paying the loan, the insured will remain with $200,000. Based on the deal structure the insured may have to pay a commission of up to $60,000 to the agent/broker who brokered the deal.

With the Premium Finance Program, if insured passes away during the loan period, the processed will cover the loan and the rest will go to the beneficiaries

in conclusion, senior citizen have some options when it comes to generating cash using their insurability via channels like carrier approved premium finance program and life settlement program , all designed to help them use their life insurance policy and their life insurance insurability

Boaz Arbel is the General Manager at Arbel Life, LLC, a New York based company that specializes in the high net worth senior market. To obtain further
Information about Life insurance Premium Finance, Life Settlement and to read additional articles about these subjects please visit the website:

www.arbellife.com you may also read all publications at http://1800pf.blogspot.com/

How to donate your Life Insurance Policy to Charity

Life insurance can be a simple and flexible approach to make a significant contribution to your favorite charity

A Life insurance policy is an excellent tool for charitable giving. Not only does it allow you to make a substantial donation to charity at no cost to you, but you may also benefit from tax rules that apply to gifts of life insurance.

With the guidance and support of your favorite charity and the approval of your legal and/or tax advisors, along with the support of your family, you can create something very exclusive that is reserved for a select group of eligible individuals.

It can be a life insurance policy that has provided its original purpose, some examples are: a spouse who has past away and no longer needs it, a grown child who is financially independent or to protect a business that no longer exists. It can also be a new policy purchased specifically to benefit your favorite charity; a gift of life insurance can enable you to leave a much greater gift to your favorite charity than may have been possible during your lifetime.

There are at least four different ways in which you can structure a gift of life insurance to your favorite charity:

1. You can make your favorite charity a beneficiary of an existing life insurance policy. Upon your passing, the full face value amount of the policy will go to your favorite charity. Although the proceeds from the policy will be included in your gross estate, the full amount received by your favorite charity may be deductible as a charitable deduction. To make your favorite charity a beneficiary of an existing life insurance policy, you can simply request a beneficiary designation form from your employer or insurance company. Most forms require the following information:

· Your favorite charity full legal name:

· Your favorite charity permanent mailing address:

· Your favorite charity federal tax identification number:

· Your relationship to the beneficiary: Charity

2. You can make your favorite charity the owner and beneficiary of an existing paid-up life insurance policy. By doing so, you may be able to deduct an amount equal to the fair market value of the policy, or your cost basis, whichever is less. Since your favorite charity becomes the owner of the policy, the proceeds will not be included in your estate for tax purposes.

3. You can make your favorite charity the owner and beneficiary of a policy on which you are still paying premiums. You may be able to deduct an amount equal to the approximate cash value of the policy or the policy's cost basis, whichever is less, in the year in which you give the gift. You may also be able to deduct any future premium payments, and the proceeds will not be included in your estate for tax purposes.

4. You can purchase a new policy and make your favorite charity the owner and beneficiary. Because your favorite charity is the owner, you may be able to deduct premium payments as charitable contributions for as long as the premiums are paid, Subject to state limitations. In addition, the proceeds will not be included in your estate for tax purposes.

Life insurance is a flexible charitable giving tool that can be utilized to suit your individual financial needs while also substantially supporting your favorite charity’s programs.

If you are thinking about a donation of life insurance to a charity, I encourage you to consult with your legal advisor and/ or tax advisor to help you decide on the best approach for you. It is important to note that some states don’t consider a charity to have insurable interest in its donors lives.

Boaz Arbel is the General Manager at Arbel Life, LLC, a New York based company that specializes in the high net worth senior market. To obtain further information about Carrier Approved Life Insurance Premium Finance programs, Life Settlement and charitable giving and to read additional articles about these subjects please visit Arbe Life LLC, website at http://www.arbellife.com/

. You may also read all publications at http://1800pf.blogspot.com/

What is a Life Settlement? : By Boaz Arbel

Life Insurance - Life Settlement

New York , NY 8-2008 - When I first looked into the life settlement industry back in 2003 it was something I was not familiar with and I research the field due to a person I know and brokered the sale of a large portfolio consisted 200 policies of viaticle cases. The person I know made a fortune off this one deal and today he is a very successful businessman who turned this one deal results to a one man business empire. As of now, he is not involved in this industry and mainly trusts me and my company to provide him with the right and most accurate updates about the industry and its regulations. Lately, he approached me in an unusual manner asking very specific questions about the industry. I was kind of surprised from the fact that a 34 year old self made millionaire with a net worth of more than
$25,000,000 shows such interest in my industry. Are coming back? I asked. “Yes” he answered.

The life Insurance Life Settlement Industry is growing very fast and each year more and more professionals understand the potential in this industry and offer their clients with the Life Settlement option.

What is a Life Settlement?
A life settlement is the sale of a life insurance policy for a large cash payment that is better than the policy’s cash surrender value,
A life settlement is defined as a financial transaction in which a policy owner holds an unwanted or not needed life insurance policy and sells the policy to a funder who represents a bank or large institutions.
The purchaser becomes the new owner and beneficiary of the policy and is responsible for all following premium payments.

Life Settlement or Life Settlements, also known as senior settlement
Is a concept that getting more and more popular among people who do not want continues paying the premiums for their unneeded / unwanted life insurance policy

Reasons for selling the policy
• Children are all grown up and doing well
• Need cash for retirement
• Eligible for better performing product
• Need funds for Investment
• Premium on policy become to be very expensive
• Change in your estate structure and worth
• Divorce or outlive the beneficiaries
• Need large amount of cash and do not want to liquidate assets and savings Want to give large amount of money for charity while alive
• Help beneficiaries before passing away.
• A company key person insurance policy is no longer needed
• The life insurance coverage is related to an obsolete buy/sell agreement



Recent articles, surveys and research show that this industry is yet to reach it full capacity and will grow tremendously in the next few years

Few statistics will put the opportunity in perspective:
• By 2030, there will be about 70 million older Americans, more than doubling the 1990 number. In the year 2000, about 13 percent of the population will be 65-plus. In 2030, that rate will increase to 20 percent, or one in every five Americans. (U.S. Census Bureau)
• 47% of seniors over age 65 own life insurance. (Bernstein Research Call)
• 59% of life settlement clients are between ages of 71-80. (National Underwriter)
• 20% of a policy’s face amount is the average payout to life settlement sellers. (Deloitte Development LLC)
The numbers are staggering:
• Approximately $431 billion of life insurance in force
• 88% of Universal Life policies never result in a claim
• Approximately $15 billion worth of Life Settlement transactions will occur this year.
• That figure is a 100% increase over last year. Another 100% increase is expected next year.
• The market is expected to grow to over $160 billion over the next several years.(Bernstein Research Report, June 2005)


Boaz Arbel is the general manager of Arbel Life , LLC a New York based company that specialized in the high net worth senior market.
To get more information about Life insurance Premium Finance, Life Settlement and to read more articles about the subject please visit Arbel Life, LLC web site at www.arbellife.com

Carrier Approved Life Insurance Premium Financing

Carrier Approved Life Insurance Premium Financing

By Boaz Arbel , NY www.arbellife.com Lots of high net worth senior citizens find the need to purchase a high face value life insurance policy to protect their family or for the purpose of estate planning. Individuals who in possession of major assets who does not wish to liquidate their properties and investments to pay expensive life insurance premiums have the opportunity of having their premiums financed through a Carrier Approved Life Insurance Premium Finance Program. By having a major bank pay the life insurance premiums, the insured frees up his assets to be used more proficiently in other places. With no (or very little) out of pocket expenses, personal guarantees and minimum financial risk a qualifying person can give millions to his family or Alma matter in the form of a death benefit. Using Carrier Approved Life Insurance Premium Finance Program also lowers out of pocket expenses and potential gift taxes.

Lots of senior citizen utilized the option of finance a new life insurance policy as part of their estate planning. Through lending funds to make premium payments, insured may have the capacity to acquire new policy without reducing cash assets or savings while getting their full insurability which includes illiquid assets such as real estate.

Life Insurance Premium Finance Qualification

· 70 years of age or older (Male and Female)

· Above average health condition

· Minimum net worth of $5,000,000

Premium Finance Programs Available

Recourse premium financing is now the most accepted type of carrier approved premium financing program. The main distinction between partial and non-recourse is an additional collateral requirement on top of the policy that must be posted by the insured. On top of the policy, an additional collateral amount of 25% to 100% of the current outstanding loan value in the form of personal guarantee or letter of credit is required by the premium finance company. Carrier approved program that the insurance companies have reviewed the programs and have generally approved the premium finance companies program structure and agree to issue policies under the program. The programs come with a variety of loan terms of 2, 3, 5, 7 and 10 years in addition to a lifetime loans. The rates may vary but are generally variable or fixed and tend to be lower than the non recourse loan offered by some investors and 3^rd parties. Partial-recourse programs are usually available to insured’s over the age of 70 with at least a $5,000,000 in net worth.

Reasons for applying to the Carrier approved Premium finance program

No need to execute high performing investments.

Maintain cash on hand.

Maintain current cash flow.

Part of an estate tax plan.

Provide a legacy benefit.

Full utilization of your insurability

The process

Submission of informal application and HIPAA to release medical information. All information is being gathered and submitted to insurance companies who rate the proposed insured for eligibility for coverage. Once proposed insured has been approved by the insurance company, premium finance companies will offer loans to finance the premium and the policy will be issued into an irrevocable life insurance trust, or ILIT. Policy owner will name beneficiaries of the life insurance policy which may be a, children, spouse, business partners or charity

After that initial loan amount is dispersed to the ILIT which pays the premium on the life insurance policy. As future premium payments to the insurance company are required, Lender Company continues to pay funds according to the premium time table.

Once the loan get to its maturity the borrower may have a number of options including the continuing to finance the premiums by themselves, repaying the loan plus interest and keeping the life insurance policy or selling the policy in the secondary market for life insurance using the life settlement method. If the insured passes away during the finance period the beneficiaries will get all proceeds and will pay back the loan

Boaz Arbel is the general manager of Arbel Life , LLC a New York based company that specialized in the high net worth senior market.

To get more information about Life insurance Premium Finance, Life Settlement and to read more articles about the subject please visit Arbel Life, LLC web site at www.arbellife.com

What is a : Life Settlements- Life Settlement- Senior Settlement

What is a : Life Settlements- Life Settlement- Senior

Settlement

“Get Cash Now For Your Unneeded Life Insurance Policy”

Life Settlements help life insurance policy owners and their loved once the opportunity to sell their policies in exchange for a large cash payment, that is larger than the cash surrender value, if any, offered by the life insurance company. The majority life insurance policies are obtained to care for loved ones and to protect them from the uncertainty in life. The majority of these policies are never needed and results with no claim (88%). Once the policies have provided their valuable purpose, the owner either allows them to lapse or give up the policies to the insurance company for cash surrender value. The current growth of the Secondary Life Insurance Market provides the policy owner and insured, a chance to walk away with a large amount of money.

Life Settlement - Life Settlements – Senior Settlement

“Get Cash Now For Your Unneeded Life Insurance Policy”

“Unlock the hidden value of your term or permanent life insurance”

What is a Life Settlement?

A life settlement is the sale of a life insurance policy for a large cash payment that is better than the policy’s cash surrender value,

A life settlement is defined as a financial transaction in which a policy owner holds an unwanted or not needed life insurance policy and sells the policy to a funder who represents a bank or large institutions.

The purchaser becomes the new owner and beneficiary of the policy and is responsible for all following premium payments.

Life Settlement Qualification

· 70 years of age or older ( Male and Female )

· Minimum face value of $500,000 (No Maximum)

· Policy is more than 2 years old

· Premium on the policy are less than 5% of the policy face value

· Cash surrender (if any) is less than 15% of the policy face value

· Types of policies : Universal Life , Whole Life , Term ( Only if convertible )

· Life expectancy greater than 2 years but less than 15 years

The process

Application - Insured and policy owner sign an application giving Arbel Life, LLC the right to gather medical information in order to determine eligibility and pricing for the settlement.

Evaluation -All material and evaluations gathered by Arbel Life, LLC are submitted to all licensed and regulated providers in order to get the best offer on the policy

Negotiation - Arbel Life, LLC will negotiate the offers with the providers and the client for fast and best results.

Contract – once agreed on a purchased price for the policy a contract will be formed by the buyer. Arbel Life, LLC will make sure everything is being done correctly and all funds are being secure and ownership on the policy is being transferred and client is being paid.

Reasons for selling the policy

Children are all grown up and doing well

Need cash for retirement

Eligible for better performing product

Need funds for Investment

Premium on policy become to be very expensive

Change in your estate structure and worth

Divorce or outlive the beneficiaries

Need large amount of cash and do not want to liquidate assets and savings

Want to give large amount of money for charity while alive

Help beneficiaries before passing away.

A company key person insurance policy is no longer needed

The life insurance coverage is related to an obsolete buy/sell agreement

Case studies

Female: 79
Policy Type: Universal Life
Face Amount: $750,000
Cash Value: $107,000
Life Settlement cash paid to customer: $150,000

Male: 70
Policy Type: Convertible Term Life
Face Amount: $500,000
Cash Value: $0
Life Settlement cash paid to customer: $95,000

Male: 86
Policy Type: Universal Life
Face Amount: $1,000,000
Cash Value: $155,000
Life Settlement cash paid to customer: $450,000

Boaz Arbel is the General Manager at Arbel Life, LLC, a New York based company that specializes in the high net worth senior market. To obtain further information about Life insurance Premium Finance, Life Settlement and to read additional articles about these subjects please visit the website: http://www.arbellife.com/

You may also read all publications at http://1800pf.blogspot.com/

Life Settlement - The Untold Numbers about this industry

When I first looked into the life settlement industry back in 2003 it was something I was not familiar with and I research the field due to a person I know and

brokered the sale of a large portfolio consisted 200 policies of viaticle cases. The person I know made a fortune off this one deal and today he is a very

successful businessman who turned this one deal results to a one man business empire. As of now, he is not involved in this industry and mainly trusts

me and my company to provide him with the right and most accurate updates about the industry and its regulations. Lately, he approached me in an

unusual manner asking very specific questions about the industry. I was kind of surprised from the fact that a 34 year old self made millionaire with a net

worth of more than $25,000,000 shows such interest in my industry. Are coming back? I asked. "Yes" he answered.

The life Insurance Life Settlement Industry is growing very fast and each year more and more professionals understand the potential in this industry and

offer their clients with the Life Settlement option.

What is a Life Settlement?

A life settlement is the sale of a life insurance policy for a large cash payment that is better than the policy's cash surrender value,

A life settlement is defined as a financial transaction in which a policy owner holds an unwanted or not needed life insurance policy and sells the policy to a

funder who represents a bank or large institutions.

The purchaser becomes the new owner and beneficiary of the policy and is responsible for all following premium payments.



Life Settlement or Life Settlements, also known as senior settlement Is a concept that getting more and more popular among people who do

not want continues paying the premiums for their unneeded / unwanted life insurance policy



Reasons for selling the policy

· Children are all grown up and doing well

· Need cash for retirement

· Eligible for better performing product

· Need funds for Investment

· Premium on policy become to be very expensive

· Change in your estate structure and worth

· Divorce or outlive the beneficiaries

· Need large amount of cash and do not want to liquidate assets and savings Want to give large amount of money for charity while alive

· Help beneficiaries before passing away.

· A company key person insurance policy is no longer needed

· The life insurance coverage is related to an obsolete buy/sell agreement



Recent articles, surveys and research show that this industry is yet to reach it full capacity and will grow tremendously in the next few years

Few statistics will put the opportunity in perspective:

· By 2030, there will be about 70 million older Americans, more than doubling the 1990 number. In the year 2000, about 13 percent of the population will be

65-plus. In 2030, that rate will increase to 20 percent, or one in every five Americans. (U.S. Census Bureau)

· 47% of seniors over age 65 own life insurance. (Bernstein Research Call)

· 59% of life settlement clients are between ages of 71-80. (National Underwriter)

· 20% of a policy's face amount is the average payout to life settlement sellers. (Deloitte Development LLC)

The numbers are staggering:

· Approximately $431 billion of life insurance in force

· 88% of Universal Life policies never result in a claim

· Approximately $15 billion worth of Life Settlement transactions will occur this year.

· That figure is a 100% increase over last year. Another 100% increase is expected next year.

· The market is expected to grow to over $160 billion over the next several years.(Bernstein Research Report, June 2005)

Boaz Arbel is the general manager of Arbel Life, LLC a New York based company that specialized in the high net worth senior market. To get more information about Life insurance Premium Finance, Life Settlement and to read more articles about the subject please visit Arbel Life, LLC web site at http://www.arbellife.com