Insurance Agent Forum

[joeblow]

Originally Posted by ReSaleLife

Re-Sale Life policies from the company are not pooled as a security. The clients are fractional owners as irrevocable beneficiaries. This company is not LPHI, but it was started by some former LPHI employees who have made their processes better and much more client friendly.

Some of the differences include:
[snip]

-commissions are 8% with overrides of 1% on agents you bring in as well.

Personally, I believe these processes to be much better than LPHI. My website has additional information as well as a link to sign up for a webinar to learn more about it. www*resalelife*com (sorry, it wouldn't let me add a link.)

Resalelife's website must be pretty expensive. My understanding is a 10% commission is pretty standard from Retirement Value. (10/1/1 - 10% , plus 1% overrides for two levels).

Also, resale, perhaps you'd care to comment on the recent I.R.S. Revenue ruling pertaining to Life Settlements investments?

[ReSaleLife]

Originally Posted by joeblow

Resalelife's website must be pretty expensive. My understanding is a 10% commission is pretty standard from Retirement Value. (10/1/1 - 10% , plus 1% overrides for two levels).

Also, resale, perhaps you'd care to comment on the recent I.R.S. Revenue ruling pertaining to Life Settlements investments?

8%-1-1 is the standard with Retirement Value. I haven't heard of anyone getting 10-1-1 contracts since they opened up shop.

As to the I.R.S. Revenue Ruling 2009-14:

"...when the buyer of the policy resold it to a subsequent buyer, the life insurance policy became a capital asset, the ruling found, because the buyer bought it for profit-making reasons. Thus, its tax consequences were analyzed under capital gains tax rules."

Www*naifa.org/advocacy/govwatch/20090501_irs.cfm

This is the genius of Retirement Value's model. Each policy is purchased by a buyer and then resold to the investors.

[lifesettlementadvisor]

AIS out of Houston has a similar product as Retirement Value.

They start people between 10-13%

[joeblow]

Originally Posted by ReSaleLife

As to the I.R.S. Revenue Ruling 2009-14:

"...when the buyer of the policy resold it to a subsequent buyer, the life insurance policy became a capital asset, the ruling found, because the buyer bought it for profit-making reasons. Thus, its tax consequences were analyzed under capital gains tax rules."

Www*naifa.org/advocacy/govwatch/20090501_irs.cfm

Thank you for the link to the naifa analysis. Your quote is correct only insofar as it pertains to sale proceeds from B's resale of the policy to C. The I.R.S. clearly states that the policy was a capital asset in the hands of B, the secondary purchaser of the policy.

"Section 1222(3) defines long-term capital gain as gain from the sale or exchange of a capital asset held for more than one year if and to the extent such gain is taken into account in computing gross income. Section 1221(a) provides that the term "capital asset" means property held by the taxpayer (whether or not connected with a trade or business), but does not include items described in § 1221(a)(1)-(8). The life insurance contract in B's hands was not property described in § 1221(a)(1)-(8), and was thus a capital asset in B's hands."

So what? The very next sentence in the Ruling reads -

"Neither the surrender of a life insurance or annuity contract nor the receipt of a death benefit from the issuer under the terms of the contract produces a capital gain. Accordingly, the $71,000 income recognized by B upon the receipt of death benefits under the contract is ordinary income."

While the Revenue Ruling addresses B's sale of the policy to tertiary purchaser C, it most certainly does not address the proper treatment of the death benefits to be received by C. Capital asset or no, it remains unclear to me that those death benefits can be presumptively treated as capital gains.

Now IANAL, most definitely not a Tax Lawyer, and I've been wrong before. But I'd like a far more definitive answer to this question. And no, I'm not demanding it of you, I'm just sayin'.

[cornettes]

Lifesettlementadvisor, do you work with lpi, retirement value or the one out of houston? My first time on this forum and you seem to have posted the most informed and value added comments on life settlement but i don't think i caught who you represent? I'm already licensed with rv but just would like to network with other individuals active in the industry.

[lifesettlementadvisor]

Right now, I'm selling whole policies and not fractional products. If I was going to go back to the fractional game, I would go for AIS out of Houston. They are the most transparent and agent friendly non-lpi company to work with. And I personally think it is a better product than Lpi.

[JS17]

Originally Posted by cornettes

lifesettlementadvisor, do you work with lpi, retirement value or the one out of houston? My first time on this forum and you seem to have posted the most informed and value added comments on life settlement but i don't think i caught who you represent? I'm already licensed with rv but just would like to network with other individuals active in the industry.

________________________________________________

Call me in my office (m-f) to discuss 727-683-1730, Judi

[R. Paul Aguirre]

[quote=ReSaleLife;171099]www*resalelife*com (sorry, it wouldn't let me add a link.)

Quote]

Hmm website appears to be broken.

[ReSaleLife]

[quote=R. Paul Aguirre;173495]

Originally Posted by ReSaleLife

www*resalelife*com (sorry, it wouldn't let me add a link.)

Quote]

Hmm website appears to be broken.

My website is being redone as we speak. Should be up in the next few days. In the meantime, we put on webinars that last about 30 minutes that you can learn more.

Thursday July 23rd at 10 AM (Eastern Time)
Tuesday July 28th at 2 PM
Thursday July 30th at 10 AM

Let me know if you would like to log on to any of these and I'll email you the link.

My email address is colin@resalelife.com.

[joeblow]

Originally Posted by lifesettlementadvisor

Right now, I'm selling whole policies and not fractional products. If I was going to go back to the fractional game, I would go for AIS out of Houston. They are the most transparent and agent friendly non-lpi company to work with. And I personally think it is a better product than Lpi.

LSA, pls ping me w/ your contact info per our conversation, tks!

[cornettes]

Interesting LSA, you sell whole policies, are you buying for institutional money or extremely high net worth investors?