Settlements Strategy

Recent Life Settlement Transactions Reveal Broad Social Utility

Seniors Are Selling Unwanted Life Insurance Policies to Solve Wide Range of Financial Challenges

May 14, 2019 — ORLANDO, Fla., May 14, 2019 /PRNewswire/ — Asset Life Settlements, LLC announced that an analysis of the company’s life settlement transactions over the past year indicates that seniors and retired business executives are selling their unwanted policies to address a wide range of financial challenges.

“Some life settlements, especially those involving high net worth clients, often require complex strategies to achieve a favorable outcome,” said Scott Thomas, Co-Founder of Asset Life Settlements.  “When selling large policies, it’s important to use an experienced broker who is familiar with the technical aspects of estate planning and one who has the skill to negotiate with secondary market buyers.”

As an example, Thomas noted a transaction involving a $2.2 million policy with 10 percent annual premiums owned by an 86-year old. The policy was initially purchased using premium financing and collateralized by the insured’s $800,000annuity. Unfortunately, the policy did not perform as illustrated and the insured struggled to make the loan payments. The policy had a cash surrender value of only $130,000 and the client was facing foreclosure on the loan totalling $930,000. Thomas negotiated between the lender and the buyer to craft a life settlement rescue strategy that resulted in a cash settlement of $510,000. The life settlement minimized the client’s level of debt, forestalled foreclosure on the loan, and kept the annuity intact.

Turning $300,000 Into $600,000

Company Co-Founder Jeff Hallman explained that, “Asset Life Settlements specializes in negotiating win-win solutions involving complex cases in spite of the odds. Scott and I have more than 40 years combined expertise in the secondary market for life insurance. That’s why advisors, wealth managers, and family offices who represent high net worth clients choose to work with us. They recognize we have the skill and expertise to produce favorable outcomes.”

Hallman cited a recent case involving a 74-year old businessman who felt burdened by annual premiums of $254,000 for a $10 million corporate-owned life insurance policy that he no longer needed. He asked Hallman to explore whether he would qualify for a cash settlement that was double the policy’s cash surrender value of $309,000. Hallman noted that the insured’s life expectancy was greater than 15 years — far beyond the 12-year limit as required by most buyers. Irrespective of the challenges, Hallman negotiated with buyers based on the overall merits of the transaction and was able to meet the client’s expectations with a $600,000 cash settlement.

a 74-year old businessman who felt burdened by annual premiums of $254,000 for a $10 million corporate-owned life insurance policy that he no longer needed...

About Asset Life Settlements, LLC
Asset Life Settlements is a leading life settlement brokerage and secondary market advisory firm. Based in Orlando, FL, the company’s brokers are skilled at negotiating the highest market value for life insurance policies so that senior policy owners can “sell with confidence.”  As a member of the Life Insurance Settlement Association, the company is committed to industry best practices and authorized to do business in 47 states. For more information, call 855-768-9085 or visit