For Immediate Release
La Jolla, California(September 3, 2009) – Amid growing scrutiny of life settlements and their securitization, the Securities and Exchange Commission has created a task force to examine financial products, according to The Wall Street Journal.
Reports of the SEC’s interest in the packages of life settlements arrived on the heels of legislators’ increased interest in the products. Rep. Paul E. Kanjorski, D-Pa., chairman of the House Financial Services Subcommittee on Capital Markets, Insurance and Government Sponsored Enterprises, announced a Sept. 24 hearing to discuss the securitization of life settlements.
Most of the current news reports have focused on the potential pitfalls of Life Settlement. Some of this recent press would lead you to believe that the “evil” Wall Street institutions are trying to profit from DEATH.Some speculate that special interest groups representing the insurance industry are behind the ghoulish label that many in the media are placing on the industry.The fact that Wall Street is now looking to profit from the life settlements market does not mean that Wall Street is wishing for your death.
Insurance companies and associations are beating the drum strongly against life settlements in an attempt to discourage policy holders whose policies might otherwise lapse or be surrendered from entering the life settlements market. The reason – over 80 percent of all life insurance policies written fail to pay out to the policyholder’s beneficiary.
A.M. Best released its research on the life settlement policies available and found that a mere 8 percent of policy holders attempting to enter the life settlements market have life expectancies determined by medical personnel to be 6 years or fewer, thus burying the myth of ghoulish investing.
For senior citizen policyholders, the life settlements market could be an alternative solution that can help alleviate policyholders’ recessionary losses, or could help policy holders identify, and replace, an older, obsolete policy.
Older life insurance policies, while a stable investment choice, may now be obsolete thanks to market fluctuations, lifestyle changes, and new product offerings. Policy holders could be risking paying too much for too little coverage. Opulen Capital,a leadingspecialized financial services firm focusing on products and servicestailored for senior citizens, suggests a life insurance audit to policy holders with a life insurance policy more than three years old.
“Recent changes in the financial markets may have greatly impacted your financial portfolio,” warns Opulen’s Managing Partner Steve Ingles. “One of the most overlooked areas of investment is the life insurance policy. Too often, policy holders buy the insurance and then forget about it.” That could be a critical misstep, says Ingles.
Also, life events occur that were not addressed during the initial life insurance purchase. “Any time there is a life event – a marriage, birth, job change, change in lifestyle or circumstance – policy holders need to examine each event against the life insurance policy’s terms and death benefits,” suggests Ingles. “Often, policy holders have additional considerations, such as beneficiaries or death benefit amounts, that go unnoticed.Frequently, seniors have policies that theydon’t need, don’t want, or can’t afford.The typical response is to either cancel the policy or let it lapse, not realizing that by selling the policy, they can reap a substantial cash windfall and put themselves in a better financial position.This is where a Life Settlement can be a life changing event for a senior.”
An audit of your life insurance policies can uncover outdated areas of the policy, and can even reveal overpayments made by policyholders. Also, newer products may exist that are less expensive and offer better coverage terms.
It can also determine the policy’s fair market value and relevance. Brokers can offer up options to surrendering or allowing policies to lapse, including taking advantage of higher policy valuations on the life settlements market.
If your life insurance policy is three years old or older, you should consider the benefits of having a life insurance audit. Policy holders should consider having a life insurance audit every three years to ensure that coverage is up-to-date. Ultimately OpulenCapital.com believes that Life Settlement is an option that can benefit a large percentage of seniors and welcomes the SEC and any government oversight that might help quell the negative press.
For more information, visit our website at http://www.OpulenCapital.com or call Opulen at 877-OPULEN-1 (877-678-5361)
Contact Details:
Steve Ingles
Street: 941 Pearl Street, Suite 5
City: La Jolla,
Country:
State:CA
Zip Code: 92037
Phone : 1-877-678-5361
Email: [email protected]
Web Site: http://www.OpulenCapital.com
###
