By Philip Honao
As consumers get to grips with the reality of life settlements, an increasing number of large prescribed backers are realizing the great potential for returns and are leaping into the multi-billion buck industry. But where does the small investor slot in. Inspite of what the corporate landscape may suggest, there are ways a tiny investor can benefit from the recently regarded asset sector. Financiers should proceed with caution nonetheless , as the hopeful quality of life settlements remains a topic of heated debate.
Taking another look at life insuranceWith the choice by the Financial Accounting Standards Board (FASB) a couple of years back to recognise the true market valuation of a life insurance policy, life insurance is now considered a valid asset as well as insurance, Doug Head, executive director for the Life Insurance Settlement Organisation, asserted. Still, a lot of folks have not looked at it that way, he said.
As word gets out about life settlement as an alternative choice to surrendering or lapsing a life insurance policy, buyers are catching on to the proven fact that their human life worth or the maximum amount of life assurance they can obtain, based totally on revenue and assets can be realized in the life settlements market place.
Before this market place opened up, [a persons human life value] was just a plain factual statement, perhaps engaging at a cocktail party, but actually meant nothing to the individual who had that capability, David Kane, president of the advantages division at York International, recounted. Now that ability has become an asset and many of us will say well let me buy 4,000,000 dollars worth of insurance, and [after the contestability period], I'm going to sell it.
Therefore, the life settlement marketplace presents purchasers with a fascinating opportunity to take a position in their own life assurance. Put simply, the fact that life assurance is an asset that may be bought and sold like other kinds of property might encourage consumers to get more life assurance coverage when they know there is liquidity for that asset in the future.
Taking another look at life insuranceWith the choice by the Financial Accounting Standards Board (FASB) a couple of years back to recognise the true market valuation of a life insurance policy, life insurance is now considered a valid asset as well as insurance, Doug Head, executive director for the Life Insurance Settlement Organisation, asserted. Still, a lot of folks have not looked at it that way, he said.
As word gets out about life settlement as an alternative choice to surrendering or lapsing a life insurance policy, buyers are catching on to the proven fact that their human life worth or the maximum amount of life assurance they can obtain, based totally on revenue and assets can be realized in the life settlements market place.
Before this market place opened up, [a persons human life value] was just a plain factual statement, perhaps engaging at a cocktail party, but actually meant nothing to the individual who had that capability, David Kane, president of the advantages division at York International, recounted. Now that ability has become an asset and many of us will say well let me buy 4,000,000 dollars worth of insurance, and [after the contestability period], I'm going to sell it.
Therefore, the life settlement marketplace presents purchasers with a fascinating opportunity to take a position in their own life assurance. Put simply, the fact that life assurance is an asset that may be bought and sold like other kinds of property might encourage consumers to get more life assurance coverage when they know there is liquidity for that asset in the future.
About the Author:
This document is all about securities fraud attorney and finra arbitration . The writer is Philip Honao.
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