- Declining real estate values have made it more difficult for seniors to sell their homes in order to pay entry
fees and monthly expenses for senior housing and long-term care facilities.
numbers of new residents entering senior housing have challenged facilities that rely on strong occupancy levels to underwrite
the medical needs of older residents.
- Many seniors with life insurance
policies that they no longer need, often lack awareness that they can sell a life insurance
policy in the secondary market for an immediate cash settlement.
- The demand for senior housing and health care
facilities is expected to increase with the aging baby boom population.
aging seniors explore their options for affordable housing and long-term care, administrators have an opportunity to educate
current and prospective residents about life settlements as a financial resource to help finance their
housing and medical care needs.
Education is Key
- At Moore Financial Services we specialize in addressing the business challenges fo today's senior
housing and health care organizations.
- We put our financial and insurance expertise to work
for you through consultation, innovation and collaboration
- We welcome the opportunity to visit
with you and other key members of your organization to explain the secondary market for life insurance and how it could impact
your occupancy levels.
Outreach to Senior Consumers
Moore Financial Services is available to assist your organization in educating current and
prospective residents about the benefits of a life settlement for policies they no longer need.
soft occupancy levels have challenged your facility's bottom line and growth strategies. Contact us today. Life Settlements
could be one of the solutions your are seeking.
The Facts About Life Settlements
A life settlement is
the sale of a life insurance policy to an institutional funder for an amount that is typically 3 to 5 times greater than the
policy's cash surrender value.
Why Do Seniors Sell Their Policies?
- Policy no longer needed for estate planning.
- Retired business owner, key man policy
- Premium payments have become too expensive
- Money is needed
for retirement lifestyle
- Funds needed for medical or long-term care
Are Life Settlements Regulated?
Yes 42 of 50 states now regulate life
settlements. Brokers who handle life settlement transactions are required to be licensed in the state from which they operate
as well as be licensed in the state in which the policy owner resides.
of Policies Qualify?
Most policies in the secondary market are permanent life insurance
policies. Such as
- Universal Life (UL)
- Joint Survivorship
Universal Life (SUL)
- Term Policies Still Convertible to Universal Life
What are the Qualification Factors
Most policies sold in the secondary
market involve seniors (typically 75 and older) who have an estimated life expectaancy of 12 years or less.
A Typical Life Settlement TransactionThe average life settlement transaction involves
a life insurance policy with a face value of $1 million to $3 million for a senior 78 years or older. It is not uncommon
for a senior with a $1 million policy to receive a cash settlement fro $250,000 to $300,000-the average entry fee for a CCRC