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Life Settlements: A Solution to a
Growing Problem for Seniors

2.  Sale of an existing life insurance policy
 Age 65 or above
 On the secondary market
 For more than its cash surrender value
What is a life settlement?
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3.  A thriving and growing market
 $87 Billion in face amount in 2011
 Estimated to grow to $151 Billion in 2020
Life Settlement: A Growing Market
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4.  U.S. Supreme Court case Grigsby v. Russell
 Established Life Insurance policy as “private
property”, may be assigned by owner or sold
 Washington state law requires insurance
companies disclose this option to policy owners
that are terminating or letting their policy lapse
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5. 5
There is a reason Life Insurance
Companies have Billions in Assets

6. Universal Policies
Received
Benefits
15%
No
Benefits
Received
85%
0%
85%
Do not pay
death benefits
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7. Term Policies
95%
Do not pay
death benefits
Benefits
Received
No Benefits
Paid
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8.  As clients get older, a life insurance policy may no longer
be needed, or may become cost prohibitive to maintain.
 Premium dollars may be better spent on retirement, long
term care, maintaining lifestyle, other opportunities, etc.
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Policy Owners Face Decisions
“Should I…
Keep paying premiums?
Let the policy go?”

9. $1.4 trillion of coverage on
people over the age of 65.
 In 2011, settlement market
was $5 billion in face value,
less than 1% of its potential.
 90% of all polices never pay
out a death benefit.
 Point is…policy owners still
appear to be unaware of the
life settlement option.
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Untapped Market
Private Pay Solution
 Market Facts:

10.  In 2010, approximately $972 billion death benefits
lapsed in US
 Significant amount belonging to seniors
 Extraordinary amount of missed opportunities
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11. 11
Payouts: Cash Surrender Value vs.
Life Settlement
** These columns illustrate several actual cases. There is no
set percentage of face amount paid. Criteria such as premium
amount, type of policy, age, health, and life expectancy of the
insured affect the settlement offer.

12. General Case Specifications
 Insureds aged 65+ or with health impairment
 Life expectancy range is generally 15 years and below
 Net Death Benefit in excess of $100,000
 Universal life policies are ideal; however all policy types
considered, even term policies that can be converted to a
permanent policy
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Identifying Life Settlement Cases

13. Managedby an experiencedteamwithover25
yearscombinedexperiencein life insuranceand
life settlements.
Includinga premierlicensedlifesettlement
broker.
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The L.I.M.E Exchange

14.  The competitive bid system ensures the highest possible offer is achieved
from the life settlement
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Securing the Highest Offer
$202,000
$235,000
$242,000
$550,000
$572,000
$585,000
$590,000
$0
$100,000
$200,000
$300,000
$400,000
$500,000
$600,000
Round
1
Round
2
Round
3
Round
4
Round
5
Round
6
Final
Round
Case Example - Death Benefit $2.5 Million
Final Offer of $590,000
Policy Specs: 77 Year Old Male; 8-10 Year LE; 4.1% premium; CSV < 1%

15.  Three easy steps
 Complete the application
 We will provide underwriting services
 The LIME Exchange will negotiate offers on
acceptable transactions
 Please allow 4-6 weeks for processing
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Free Non-Binding Appraisal

16. Good For You
Good For Seniors
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Life Settlements

17. "…the life settlement option appears to be not
only greatly beneficial for policy owners
wanting to sell their policies, but also provides
an interesting investment opportunity for
institutional investors willing to include
longevity risk in their portfolio and to commit
capital for the medium term.“
Professor Narayan Naik,
London Business School17
Consider this…

18. “The secondary market in
life-insurance policies is
good for consumers.”
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19. Benefits to
those providing
services to seniors
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20.  Valuable service to clients – helps them discover money to
pay for health care and retirement needs
 Expands number of private pay seniors you can assist
 Access new funds for clients
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WIIFM: Why Life Settlements for
Senior Care Providers

21.  Spouse has passed, policy no longer needed
 Premiums no longer affordable
 Need $ for long term care
 Other family priorities
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WIIFM: Why Life Settlements for
Clients

22. Thank You For Your Time!
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