Transcript Life Settlement PowerPoint Presentation

WHAT IS A LIFE SETTLEMENT?
A "Life Settlement" is a lump sum
payment to the owner of a life insurance
policy by one of many funding sources in
exchange for full ownership of the policy.
This can be related to the sale of other
assets that inevitably increase in value
over time like homes, bonds and antiques.
Never
before
have
non-terminal
policyholders been able to receive capital
in excess of their policy's cash or
surrender value to increase their cash
flow. Life Settlements are also known as
Senior Settlements or High-Net-Worth
Transactions.
WHO MAY QUALIFY?
Generally, anyone over age 70 who has
$250,000 or more in life insurance coverage
that is beyond the period of contestability
may qualify for a Life Settlement regardless
of their health condition. A basic principle to
remember is that the older the age of the
insured and/or the more health complications
that exist, the higher the settlement.
REASONS SENIORS LIQUIDATE
A LIFE INSURANCE POLICY
• Family Issues
• Deterioration of Health
• Divorce or Bankruptcy
• Beneficiary predeceases insured
• Retirement
• Finance a product that may better suit their circumstances (i.e.: Long Term
C Care, Annuities, Survivorship Policies, etc.)
• Maturity of a Term Policy
• Estate Size Reduction
• Estate Tax Reform
• Under performing policies
• Sale of Business
• Corporate liquidation of Key-Man policies
• Corporate liquidation of policies for funding buy-sell agreements
• Defective ILIT (Irrevocable Life Insurance Trust)
• 1035 Exchange
WHAT TYPES OF INSURANCE QUALIFY?
Basically all types of life
insurance qualify including:
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Universal
Survivorship
Key-man policies
Whole-life
Term (convertible)
WHAT TYPES OF FINANCIAL PROFESSIONALS
CAN BENEFIT FROM OUR SERVICES?
•Insurance Agents
•Insurance Brokers
•Accountants
•CPAs
•Attorneys (Elder Law Attorneys)
•Financial Planners/CFPs/ChFCs/CFCs
•Estate Planners/CEPs
•Certified Senior Advisors/CSAs
•Charitable Trust Officers
•Philanthropist
THE PROCESS
1.
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Policy owner or financial professional submits
completed qualification form for evaluation with signed
authorizations.
All required documentation is obtained (policy
illustrations, verification of coverage, and medical
records).
All documents are sent out for underwriting
and sent to various funding sources for offers.
Competitive bidding process occurs.
The best offer is presented to the agent and/or client
for acceptance.
Upon acceptance, contracts are sent for necessary
signatures.
Money is placed in an escrow account.
Upon verification of change of ownership and
irrevocable beneficiary, funds are disbursed.
THE TIMELINE
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Day 1 - Receive completed qualification form - begin
information gathering process
Week 1-3 - Complete the information gathering
process (medical records, policy illustrations)
Week 4-6 - Complete the underwriting process
(evaluate medical records, obtain 3rd party life
expectancy evaluations).
Week 7-12 - Negotiate with qualified funding sources
to determine the highest offer available for policy.
Present highest offer to agent. Upon acceptance:
Closing documents are forwarded to owner of policy,
and funds are placed in escrow. Upon verification of
change of ownership and irrevocable beneficiary, funds
are disbursed.
Please Note: These are only general guidelines. Each
case is unique and timing will vary.
BENEFITS TO THE CLIENT
• NO COST
• NO OBLIGATION
• NET PROCEEDS EXCEED CASH SURRENDER VALUE
• FUND ALTERNATIVE PRODUCTS
(Annuties, Long Term Care, Single premium policy)
• RELIEF OF PREMIUM EXPENSE
• ALTERNATIVE TO SURRENDERING A POLICY
• TAX BENEFITS FOR CHARITABLE GIVING
BENEFITS TO THE FINANCIAL PROFESSIONAL
• Commission from the Life Settlement
• Possibility to write new coverage (LTC,
…Annuities…)
• Commission on the conversion of a term policy
• Assist clients in investing settlement proceeds
• Commissions for referring other agents or agencies
• Residual commissions
• Client & policy retention
• Opportunity for client referrals
RECENT CASES
Male Age 77
$500,000 (Conversion)
•Premiums $31,000
•Cash Surrender $0
LIFE SETTLEMENT AMOUNT
$142,000
RECENT CASES
Male Age 78 / Female Age 79
$3,000,000 Joint Policy
•Premiums $25,500
•Cash Surrender $15,424
LIFE SETTLEMENT AMOUNT
$285,000
RECENT CASES
Female Age 66
$10,000,000 Conversion
•Premiums $190,000
•Cash Surrender $0
LIFE SETTLEMENT AMOUNT
$2,300,000
TAXATION
The following example shows a typical policy
with a face value of $1 million, $55,000 of
premiums paid and a cash surrender value of
$70,000. For example purposes we will use a
settlement amount of $200,000 paid to the
policy owner. The tax position would be:
* Tax obligations will vary with the sale of an insurance policy. Trinity Financial Services, LLC
does not make any representations as to the tax treatment of a sale of a life insurance policy.
Trinity Financial Services, LLC strongly encourages you to consult with your tax advisor,
attorney or financial planner as it relates to your specific situation.
Broker or Provider
There are many companies in the secondary marketplace trying to win your business. All of
them telling you they can provide your client the best settlement. These companies can be
broken down into two categories.
There are providers and brokers.
Providers have a fiduciary responsibility to themselves. They provide you one bid. They
may have regional salespeople, but they still only work for the provider, not multiple
companies.
Brokers have a fiduciary responsibility to the client. Brokers shop the marketplace of
several funding sources and providers, trying to create a competitive bidding atmosphere.
Competition drives up the selling price of a policy. Providing your clients with the best
possible settlement.
At the end of the day, the financial professional is doing a greater service for his/her client
by applying with Trinity Financial Services. When this financial strategy meets all the needs
of your client and their estate, you truly have done your job to the best of your abilities and
fulfilled your fiduciary responsibility to your client.
ABOUT TRINITY FINANCIAL SERVICES, LLC
We have been involved in some of the first Life Settlement cases dating back to
early 1998. With over 30 years combined experience our principals have
developed key relationships with the Life Settlement Industry's leading
institutional and private purchasing companies. We also have 5 Institutional
funding sources in particular that we helped get established in the funding
business and for this we are one of the only brokers they accept cases from.
This gives us a great competitive advantage over all other brokers.
THE DIFFERENCE
•Exclusive Funding Sources
•Full Processing Staff
•Full Disclosure on all Offers
•Volume Contracts with Institutional Funding Sources
•E & O Coverage provided
•Honesty
•Integrity
•Personalized Customer Service
•Expanded Life Settlement Parameters
THE DIFFERENCE
At Trinity Financial Services, LLC our parameters are a little different than
the Industry’s standard. We can secure offers on policies with face amounts of
$250,000.00 to unlimited face amounts. Where as the Industry’s new
standard is a minimum face value of $500,000.00 up to a maximum of
$15,000,000.00
Trinity Financial Services, LLC has evolved into an outstanding Life
Settlement Brokerage. We are currently closing cases for several large producer
groups as well as many Financial Planners and Independent Agents nationally,
and are pleased to announce we have a very high case to close percentage.
At Trinity Financial Services, LLC taking care of our client's needs and the
needs of the participating Financial Professionals has always been the top
priority. We will treat your clients with the highest level of professionalism that
you would expect and at no time would we do anything to harm the integrity of
you or your firm. We will follow the letter of the law when it comes to state or
federal guidelines and will always protect the confidentiality of your Life
Settlement clients.
COME EXPERIENCE THE
TRINITY FINANCIAL SERVICES, LLC
DIFFERENCE
Contact Trinity Financial Services, LLC
If you would like to speak with one of our specialists right now,
please call toll free 1-866-870-8746.
Trinity Financial Services, LLC
940 Centre Circle
Suite 3022
Altamonte Springs, FL 32714
Phone:
Fax:
Toll Free:
Email:
Web:
407-523-1980
407-523-1871
866-870-8746
[email protected]
http://www.TrinityFinancialLLC.com