Life Settlements Death By 1000 Cuts!

tlmarketing

Guru
100+ Post Club
The tsunami effect of life expectancy increases is just beginning to take shape, leaving serious doubts about future viability of life settlement business for agents and life settlement brokers.

A recent SEC filing by GWG is linked here. Unassociated Document

A continued retraction of the marketplace is taking place, the cost of borrowing capital for banks is increasing, life expectancies increasing, premiums increasing on policies....a slow painful death....just my own observation
 
From an "new" investor standpoint, the LE increases by 21st may bring investor confidence....but the flip side is that fewer policies price, the market for term conversions & buy new coverage is gone, and offers are so low now, there is not much incentive to sell.
 
The purpose of life settlements are to provide the policy owner an option outside of surrending it - not to flip term conversions and buy new coverage.

As long as lapse ratios stay high, there will always be policy owners that can benefit from a life settlement. As long as the net after tax offer to the policy owner is more than the surrender, its a great deal for them - especially if that number is 3-5 times the CSV
 
AVS which is one of the top 3 life expectancy firms in the country filed for bankruptcy yesterday.....largely due to the $148 million dollar lawsuit filed against it by Goshawk, which claims that AVS gave false and misleading life expectancy estimates..should be another interesting development for the life settlement industry.
 
The lawsuit mentioned below is a new lawsuit filed in January of this year.

As far as AVS operating "business as usual", that's not really the case given that the founder of AVS Phil Loy is currently suing Longevity Partners, which is the firm that bought AVS.
 
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