A business executive who is well-versed in life settlements, Bill Schantz founded Mid Atlantic Financial, LLC in 1998 to serve as the holding company for the multiple companies that are on the forefront of creating and managing products that are involved with insurance linked assets and longevity.
A recent survey conducted by Welcome Funds showed that 38 percent of older Americans were unfamiliar with life settlements. In that survey, over 200 policyholders who sold their life insurance policies through life settlement in 2019 stated that their original plan was to let the policy lapse, to cancel it, or surrender it until they learned of a life settlement as an alternative option.
According to the survey, there are other reasons why policyholders entered into life settlement transactions in 2019. Sixteen percent said their current financial situations pushed them to opt for liquidity. Seven percent said they sold their policies because their original purposes no longer exist. Three percent reported that they were burdened with healthcare and living expenses; while another 3 percent said the premium costs have become unaffordable for them.
In a life settlement transaction, the policyholder sells his or her life insurance to a third party in exchange for cash considerations, which are typically five to seven times higher than their cash surrender values. He or she can use the proceeds to pay off his or her living expenses, medical expenses, and other current obligations. The buyer, in turn, assumes all future premium payments and is entitled to receive all the death benefits upon the demise of the original policyholder.
A recent survey conducted by Welcome Funds showed that 38 percent of older Americans were unfamiliar with life settlements. In that survey, over 200 policyholders who sold their life insurance policies through life settlement in 2019 stated that their original plan was to let the policy lapse, to cancel it, or surrender it until they learned of a life settlement as an alternative option.
According to the survey, there are other reasons why policyholders entered into life settlement transactions in 2019. Sixteen percent said their current financial situations pushed them to opt for liquidity. Seven percent said they sold their policies because their original purposes no longer exist. Three percent reported that they were burdened with healthcare and living expenses; while another 3 percent said the premium costs have become unaffordable for them.
In a life settlement transaction, the policyholder sells his or her life insurance to a third party in exchange for cash considerations, which are typically five to seven times higher than their cash surrender values. He or she can use the proceeds to pay off his or her living expenses, medical expenses, and other current obligations. The buyer, in turn, assumes all future premium payments and is entitled to receive all the death benefits upon the demise of the original policyholder.
