Opulen Capital Life Settlement: How Will The IRS Rulings Affect Your Life Settlement Sale Or Purchase?

With more regulatory oversight in the life settlements market, it was inevitable that new tax laws would surface on the heels of the financial industry meltdown. News out of Washington from the Internal Revenue Service could possibly bring tax changes to participants on both side of the life settlements industry equation. Here’s a glimpse of what to expect:

Revenue Ruling 2009-13

In the May 26^th IRS bulletin, the IRS examined three different scenarios in which a policy holder A) surrendered the policy, B) sold the policy to someone unrelated who would not suffer economic loss upon the policy holder’s death, and C) sold a contract that was a level premium fifteen-year term life insurance contract without cash surrender value.

In scenario A, the policy holder who paid $64,000 in premiums and received $78,000 on surrender is tapped for $14,000  in ordinary gains due to the surrender not being a sale or exchange, the trigger for capital gain/loss.

In scenario B, the IRS figured the individual’s tax on the $80,000 sale price of the policy, minus the adjustment for the cost of insurance ($10,000)– the IRS ruled that the difference between the cash surrender value ($78,000) and the adjusted tax basis of $54,000, (total premiums of $64,000 minus the $10,000 cost of insurance) is considered ordinary income.

In scenario C,  the $20,0000 sale in the fifteenth year of the policy is treated as a long-term capital gain because the policy holder sold the policy to a third party during the last year of coverage. The entire sales price, minus half of the last month’s $500 premium, is consider the long-term gain.

Revenue Ruling 2009-14

Likewise the tax rules have changed for the secondary market holder. The IRS ruled that in Case #2, which is the same as scenario A above, the buyer of the policy then sells it to another party for $30,000. The adjusted tax basis for the first buyer is $29,000 because he’d paid the initial $20,000 for the policy and an additional $9,000 in premiums. With a profit of $1,000, the first buyer is tapped with a long-term capital gain on that amount due to the sale of the policy.

The IRS ruled that in case #1, which is identical to the scenario C above, the death benefit over the price and premiums paid is considered ordinary income.

How much will the new tax laws affect your life settlement agreement? That would depend on your policy value, surrender value, premiums paid, and the purchase price of any life settlement sale. We at Opulen can help you determine the bottom line in your particular tax situation by examining all factors in your policy and life settlement deal.

Located in La Jolla, California, Opulen Capital is a specialized financial services firm focusing on products and services tailored for senior citizens. Opulen Capital is one of the leading firms offering Life Settlement opportunities for high net worth clientele. We leverage unrivaled experience and exclusive relationships in the life settlement marketplace to structure, obtain, and sell life insurance products to maximize cash profits for our valued clients. Opulen Capital’s mission is to continue to provide the best solutions for our clients through the highest level of integrity and service. For more information, visit our website at http://www.OpulenCapital.com or call Opulen at 877-OPULEN-1 (877-678-5361)

Opulen Capital Life Settlement: Standard Purchase Agreement, Does The Market Need It?

News out last week that the Institutional Life Markets Association (ILMA) has plans to develop a standard purchase agreement for tertiary sales has excited the life settlements market. With hopes of streamlining agreements so that the focus can once again rest on the transactions, ILMA is attempting to take the guesswork out of life settlements agreements.

What is also on the table – plans to come up with a standardized purchase document for the originating life settlement transactions by the end of 2009.

Why has it taken so long? The answer: it hasn’t. ILMA has distributed a life settlement transaction disclosure statement on its site and to its members and has championed transparency, but the lack of any industry standard has been apparent to all in the market. ILMA’s push to standardize puts the industry one step closer to more market soundness and stronger fiduciary oversight.

What does standardization do? One need only look to the insurance industry in general to understand how standardized forms can improve communication with clients, third parties, and help all in the market understand the basics of the transaction process. The same holds true for the life settlements industry. With a recent survey of seniors showing that only 45 percent were not aware of the life settlements option, the industry needs to come to terms with its inability to educate on a standardized platform.

With a standardized approach, brokers and life settlement providers can ensure more transparency in the transaction process. That translates to more confidence on the part of policy holders wanting to take part in the life settlement process.

That’s not to say today’s current life settlement agreement process is flawed. To the contrary, existing purchase agreements by and large are well written contracts that protect the interests of all parties in the life settlement process. Yet where one broker or life settlements solution provider may offer a particular service or option as standard, another may not. It becomes too easy for policy holders shopping a new market to become unnecessarily confused or enter into a deal that is not what was expected.

It can also lead the way to more state regulation of the life settlement market. With more states passing legislation that allows the state insurance commissions to regulate the life settlements market, legislators and insurance commissioners will be looking to standardization as a way to tie the life settlements market into state regulatory oversight, as well as the potential for the life settlements industry to be considered for coverage under state guaranty funds.

Standard purchase agreements could tie all these areas together under the state insurance oversight, though these potential events remain to be seen. But standardization is a great first step in strengthening the life settlements market and bringing more regulatory oversight, and thus more client confidence, to the growing market.

Located in La Jolla, California, Opulen Capital is a specialized financial services firm focusing on products and services tailored for senior citizens. Opulen Capital is one of the leading firms offering Life Settlement opportunities for high net worth clientele. We leverage unrivaled experience and exclusive relationships in the life settlement marketplace to structure, obtain, and sell life insurance products to maximize cash profits for our valued clients. Opulen Capital’s mission is to continue to provide the best solutions for our clients through the highest level of integrity and service. For more information, visit our website at http://www.OpulenCapital.com or call Opulen at 877-OPULEN-1 (877-678-5361)

Opulen Capital Life Settlement: The Beneficiary Question

Probably the single most sticking point when considering any life settlement solution is what happens to one’s beneficiaries. If Jane Jones sells her life insurance policy to the life settlements market, what happens to the rights of her beneficiaries – her three children?

Truth is selling your life insurance policy does come with risks to you and your beneficiaries. While the lump sum cash payment can be welcome in tough economic times, policy holders should not rush into the life settlements market simply to grow revenue. Several factors, including the policy’s original beneficiaries, must be considered before offering your policy up on the life settlements selling block:

Will you need the policy to cover expenses at the time of death? Many beneficiaries are often recipients of the policy holder’s estate. Many policies are purchased with the idea of providing necessary funding to pay for taxes and to satisfy outstanding bills. Without the advantage of a death benefit, will your beneficiaries have enough to cover expenses after your death?

Do you need your cash to continue growing? The beauty of life insurance policies is that cash value is tax-deferred. Also, policy holders can set up their policies so that they can receive dividends. Since life settlements companies are not considered insurance companies under Federal Trade Commission rules, the payout a policy holder receives will not grow in value over the years, nor will it be exempt from taxes.

Are you planning to purchase another policy? Some policy holders may attempt to gain quick income and plans to use part of the life settlement proceeds to fund new life insurance to cover the death benefit. However, many policy holders don’t consider that the old life insurance policy will still be in effect, which could prevent the policy holder from being able to obtain another policy. Insurance companies are careful to spread their risk thinly – once a policy holder has sold a policy that still has an active death benefit, they are less inclined to write a policy for equivalent coverage.

Can you afford a new policy? Most policy holders understand that premiums vary with age. If a policy holder is able to obtain new coverage, the higher premiums could make it much more difficult for the policy holder to afford coverage. Also, if the policy holder’s health condition has changed, chances of an insurance company writing a new policy make be drastically reduced.

While the market may not be for everyone, there are many reasons still for considering a life settlement arrangement. They include:

• The original reason for needing the policy no longer exists, such as a means of protecting children or creating income for beneficiaries.
• The policy beneficiary is deceased and no other beneficiary exists.
• The policy holder is terminally ill and needs to cover medical expenses (in this case, viatical settlements may be the best option).
• The policy holder wants to dispense the policy proceeds while he or she is still living.
• The policy holder is looking to eliminate premiums and capitalize on current assets.
• The policy is in danger of lapsing and the policy holder wants to sell in order to retain some value on the policy and not lose all value.
• The policy holder has too many assets tied up in life insurance and needs diversification.
• The policy holder is looking to fund health costs that are not covered by current health coverage.

If you’re unsure if the life settlement market is for you, call Opulen Capital. Our experts will help you assess your life situation and determine the best option for your needs.

Located in La Jolla, California, Opulen Capital is a specialized financial services firm focusing on products and services tailored for senior citizens. Opulen Capital is one of the leading firms offering Life Settlement opportunities for high net worth clientele. We leverage unrivaled experience and exclusive relationships in the life settlement marketplace to structure, obtain, and sell life insurance products to maximize cash profits for our valued clients. Opulen Capital’s mission is to continue to provide the best solutions for our clients through the highest level of integrity and service. For more information, visit our website athttp://www.OpulenCapital.com or call Opulen at 877-OPULEN-1 (877-678-5361)

Opulen Capital Life Settlements: Tug Of War

The struggle between the life settlements market and the life insurance industry is understandable. Life insurance companies see an upsurge in the amount of policies claiming death benefits as a result of policy holders selling their life insurance policy to the life settlements market. What once may have been a lapsed policy or a surrendered policy now demands payment on the full death benefit.

While the life insurance industry does not state specifically their reasons for opposing the life settlements market, a few have come out publicly in opposition of the life settlements industry. One company points out the alternatives to policy holders considering life settlements arrangements: borrowing against the cash value, utilizing the policy as collateral for a bank loan, or optional riders that can allow the policy holder access to the cash value should he or she be stricken with a terminal illness.

And while these are options for some, not everyone’s situation can be solved by these methods. For policy holders whose life insurance policies are about to lapse, a life settlements agreement could be the only option. Likewise the policy holder whose beneficiaries are deceased and there are no other alternatives. And in some cases, policy holders buy life insurance for a specific reason. If that reason has been satisfied, the policy may no longer be needed and a life settlement arrangement could be an option.

In a number of cases, the life settlements market is not an option for policy holders. Life settlements requirements include:

·       The policy face value must be at least $50,000

·       Policy holders age should be 70 years or more and be in good health (some exceptions apply)

·       The surrender value must be low (talk to Opulen for specific minimum surrender value requirements)

·       The policy has to have been in force for at least two years

·       The premiums paid must amount to less than 8 percent annually

For a number of years, the life insurance industry has contended that the life settlements industry is unstable and unregulated. To the contrary, many states are now voting to include the life settlements market under their state regulatory oversight, lending more credence to the market’s stability and viability. While the industry did suffer from the emergence of stranger-owned life insurance settlements (or STOLIs) in the past, the prohibition of such deals ended the practice of buying insurance to cover a third party with the sole intent of selling that policy on the open market.

Obviously, each situation offers pros and cons depending on the policy holder and his or her unique set of circumstances. Opulen’s team of experts can help you determine if your policy or your life position is one that is conducive to the life settlements markets.

Located in La Jolla, California, Opulen Capital is a specialized financial services firm focusing on products and services tailored for senior citizens. Opulen Capital is one of the leading firms offering Life Settlement opportunities for high net worth clientele. We leverage unrivaled experience and exclusive relationships in the life settlement marketplace to structure, obtain, and sell life insurance products to maximize cash profits for our valued clients. Opulen Capital’s mission is to continue to provide the best solutions for our clients through the highest level of integrity and service. For more information, visit our website at http://www.OpulenCapital.com or call Opulen at 877-OPULEN-1 (877-678-5361)

Opulen Capital Life Settlement: Understanding Quick Sales In Life Insurance

Opulen Capital Life Settlement

So the market has you strapped and the economy has tumbled to a point where your retirement fund is needing life support. While your first thought may be to sell your life insurance policy to a life settlement broker, be careful not to move too quickly without the right information. In a market where there’s an influx of sellers and a small pocket of cautious buyers, your hasty, uninformed action could cost you.

Just because AIG used the life settlement market to securitize its obligation to the federal government does not mean you can garner a similarly great deal within a few short days. In fact, haste is not your friend in the competitive, ever-growing life settlements arena.

Buyers are still buying at realistic yields, but those have decreased within the past year. Buyers’ yields, once around 10 percent, are now topping 17 percent as buyers return to the market with more caution than pre-recession. The good news is that buyers are indeed returning, and the more competition in the market for your policy, the lower the yields will fall.

Thanks to the instability in the financial market, buyers in the life settlements market are now conducting more due diligence. To ensure their purchases are compliant with current regulations, buyers are now expecting to see more inquiries into premiums, policy language, and policy holder data in an effort to mitigate more of their purchase risks and create stronger, more responsive investments.

And buyers are now proposing shorter bidding periods – typically one week to as low as 48 hours. In a market used to two-week decision making cycles, the speed is often overwhelming for new sellers.

Life settlement brokers are also caught in the faster turnaround times. Buyers are now expecting their bids to be presented within 48 hours of a life settlement broker receiving it.

Opulen Capital advises brokers and clients to understand these new bidding constraints in the life settlement market and to develop their own knowledge and expectations before entering into any life settlement negotiations. Brokers – do your clients understand what the average buyer yields are now and what monetary of life settlement offer they may receive? Sellers – what are your payment expectations? What is your price? Is that in alignment with current life settlement market conditions?

With so many fast turnarounds in the life settlements agreements, sellers and brokers need to be aware of what closing requirements are needed in order to meet the deadline set by the buyers.

Opulen Capital’s life settlement experts are able to help both brokers and sellers become familiar with current market conditions and trends, settlement and closing requirements, and payout averages. Email us or call 877-Opulen 1 for more guidance on life settlements, life settlement agreements, and up to date life settlement market conditions.

Opulen Capital is a La Jolla, Calif.-based specialized financial services firm focusing on products and services tailored for senior citizens. With over 20 agents, $500 million of new life insurance issued, and $1 billion sold through Life Settlements, Opulen Capital provides a high level of experience and professionalism for our international customer base.

Opulen Capital Life Settlement: What Is Premium Financing And Why Should You Care?

Opulen Capital Life Settlement

If you’re considering offering your life insurance policy to the life settlements market or you need some financial assistance now for estate planning purposes, premium financing may be an option. A premium finance program is a customized financing method designed to give insureds money up front to cover the cost of their life insurance premiums.

In short, premium financing exists to help insureds cover the costs of insurance premiums. While premium finance companies exist, most insurers offer some form of premium financing. Insureds contract with the premium finance provider for a loan that lasts for the life of the insurance policy. This contract pays all premiums and bills associated with the policy and charges the insured a monthly bill for that loan.

The more typical premium finance agreements are:

• Premium only. Only the premium amount is borrowed and the borrower pays the interest, except in the case of an irrevocable life insurance trust, where the interest accrued is considered a gift.
• Premium and interest. In this case, the policy must earn more than the interest rate, or the insured will be facing either a lapsed policy or a significant payment.
• Some premium and interest. Financing just a portion of the premium and interest, which allows the borrower a faster payout or shorter financing terms.

Premium financing comes in handy when investors seek to purchase life settlements. A premium financing agreement provides funding that satisfies any large initial payments due the insurance company. Also, those taking out such contracts are able to use one premium financing deal to fund multiple insurance policies, streamlining the premium payments from several to one loan payment.

Financing life insurance premiums is a fairly straightforward process for all involved. Brokers must submit all premium finance agreements to the premium finance company and the policy holder is given clear documentation of all loan agreement fees, amounts due, and due dates.

However, questions arise as to the interest rates associated with premium financing deals. Some experts contend that because the interest due on the premium reserves is based on an index, any increase in index interest rates will also cause the premium finance rates to increase. However, some experts say that premium finance agreements come with fixed interest rates.

Some questions to ask when considering a premium finance agreement:

• What is the loan commitment fee?
• How much return must the policy produce over the loan interest rate?
• For what length of time is the loan renewable?
• Is collateral beyond the insurance policy required?
• Which life insurance policy is best suited for a premium financing agreement?
• What is the program based on – life expectancy or conventional coverage?

For help understanding the answers, give us a call. The financial experts at Opulen Capital can help you unravel the premium finance puzzle and find solutions that help you get into the life settlements market with minimal effort.

Located in La Jolla, California, Opulen Capital is a specialized financial services firm focusing on products and services tailored for senior citizens. Opulen Capital is one of the leading firms offering Life Settlement opportunities for high net worth clientele. We leverage unrivaled experience and exclusive relationships in the life settlement marketplace to structure, obtain, and sell life insurance products to maximize cash profits for our valued clients. Opulen Capital’s mission is to continue to provide the best solutions for our clients through the highest level of integrity and service. For more information, visit our website at http://www.OpulenCapital.com or call Opulen at 877-OPULEN-1 (877-678-5361)

Opulen Capital Life Settlement: When Life Settlements Make Sense

Opulen Capital Life Settlement

Too many seniors today are facing an impossible situation – low or no health care, high out-of-pocket deductibles, and the threat of needing long-term care that they can’t pay for. In the past some have opted to sell their homes and scale down in order to afford soaring health care costs. While many seniors had hoped to move into assisted living facilities using the proceeds from their home’s sale, that option has become a struggle between what they need to get from their home sale and what the current market price is. With a real estate market in flux and an economy that’s seen better days, today’s seniors have fewer options and much more to worry about.

Is this a good scenario for a life settlement agreement? In some cases, yes. Because life settlement products are not attached to the economy directly, life settlements will offer a more recession-resistant price for the seller. Also, life settlement funds are guaranteed, so there is little risk beyond the initial negotiation point. But know that buyers’ yields have risen given the current economic climate. (For more information on buyers’ yields, Email us or call 877-Opulen 1 for more guidance on life settlements, life settlement agreements, and the latest life settlement market conditions.)

Still, life settlement agreements could be the answer. In fact, some senior living centers already offer the life settlement option to clients looking to relocate into assisted living or retirement communities. Teaming with life settlement brokers, facilities will offer the life settlement arrangement as one financing option potential residents can utilize.

Most life settlement agreements offer policy holder/sellers a lump-sum payment that is greater than the policy’s surrender value (typically twice the value) but less than the death benefit. Depending on the policy holder’s specific health history, payment history, and policy face value, a life settlement could provide the necessary money to help seniors move into long-term care or assisted living and retirement communities without the added burden of dealing with an uncertain housing market and lower returns on the sale of their homes.

Also, policy holders are not limited in how they use the funds received from a life settlement. Proceeds can be used for retirement homes in resort areas, vacation travel expenses, anything. Unlike bridge loans, which are specifically designed to provide funding for community-based care, life settlements have much more flexibility in how the policy holder uses the funds. However, policy holders should weigh carefully the benefits of life settlements versus the payout and need for the additional cash. Opulen Capital experts work with policy holders to determine if a life settlement fits into the lifestyle and cash requirements of those policy holders.

Located in La Jolla, California, Opulen Capital is a specialized financial services firm focusing on products and services tailored for senior citizens. Opulen Capital is one of the leading firms offering Life Settlement opportunities for high net worth clientele. We leverage unrivaled experience and exclusive relationships in the life settlement marketplace to structure, obtain, and sell life insurance products to maximize cash profits for our valued clients. Opulen Capital’s mission is to continue to provide the best solutions for our clients through the highest level of integrity and service. For more information, visit our website at http://www.OpulenCapital.com or call Opulen at 877-OPULEN-1 (877-678-5361)

Opulen Capital Life Settlement: Which Life Settlement Is For You?

Opulen Capital Life Settlement

For the life settlement investor, buying a life settlement solution is not the same across the board. In fact, there are many variations on the life settlements agreement theme, some of which are best avoided. What used to be a traditional market has, since 2004, morphed into a plethora of choices for the investor, requiring many investors to take a refresher course in life settlements.

Before 2004, all of the life settlements market was made up of traditional life settlement arrangements; policies that matured and have existed beyond the two-year contestability period for a life settlement agreement. Now hybrids are driving more sellers into the market and creating a more complex market. Some of the newer life settlement solutions are:

Premium Financed Life Settlements.  These are life insurance policies issued using non-recourse (or hybrid) financing for premium payments during the contestability period. Designed exclusively for sale in the life settlements market, these life settlement agreements are now the dominant life settlement solution in the market. Targeting seniors who may need the extra cash, these life settlement deals offer the policy holder two years of risk-free, premium-free coverage in exchange for a profit on the policy’s future sale. Typically, these life insurance policies have less value than the traditional life settlement agreements and may carry interest tax penalties.

Investor Owned Traditional Life Settlements. Institutional investors purchased these policies under the direction of life settlement brokers or providers. Because most investors were supplied with inaccurate life expectancy data for these life settlements, most of these life settlement solutions hold little value.

Investor Owned Premium Financed Life Settlements. With this type of life settlement, the investors provide premium financing for the underlying policies. Like the investor owned traditional life settlements, life expectancy rates with these can also be inaccurate, so the buyer market for these life settlement solutions is dwindling. Thanks to the inaccuracies, many of these policies are worth much less than originally expected and as new projected policy values are calculated, lenders have been forced to foreclose, thus causing buyers to lose their original investments.

Investor and Stranger Owned Life Settlements (STOLI). These life settlement arrangements have done significant damage to the life settlements market and have generated a negative image of life settlements solutions. Blatantly structured for resale, the STOLI products have been the cause of numerous litigious activity. Despite being billed as transparent transactions, most were purchased during the policy’s contestability period and were bought and controlled as irrevocable living trusts. Some buyers have even attempted to market such arrangements as traditional life settlements.

Because we specialize in life settlements, we at Opulen Capital can help investors and sellers determine the best life settlement solution for their particular needs. Before investing or selling, ask. One of our life settlement specialists will walk you through the options available to you and help you choose a life settlement solution that fits.

La Jolla, California-based Opulen Capital’s mission is to continue to provide the best solutions for our clients through the highest level of integrity and service. The strength of our business is our commitment to improve our client’s financial net worth. For more information, email us at info@opulencapital.com or call 1-877- Opulen 1.

Opulen Capital Life Settlement: Large Growth Predicted For Life Settlement

Opulen Capital Life Settlement

It should come as no surprise by now. The United States is in the midst of a massive financial shift. The capital markets are in a state of anaphylactic shock as investors have pulled most of their money out of long-term positions in companies. Once highflying share prices are now a dismal fraction of what they used to be. It seems that volatility is so high that only the most savvy of investors would dare getting into the capital investments at this point.

In a desperate search for new safe havens to invest, investors have alighted upon life settlements. “With more cash strapped baby-boomers reaching retirement age, these people are scrubbing their asset base for anything that can be converted into liquid cash” says Steven Ingles, a senior partner at Opulen Capital. “These individuals are looking into their portfolios of investments and finding that they can sell their Life Insurance policies onto the secondary markets for immediate access to cash, in an amount far greater than what they would get if they merely traded the policy for its accrued cash value.”

What this means for the investment community is a strong asset class of non-market-correlated investments which provide a safe hedge for the investor to continue to grow their money independently of stock market and real estate valuations. For the right individual, the Life Settlement arrangement works out to be a win-win for all parties involved. The insured gets a check for 2-3 times what they paid into the policy in premiums. The investor wins because the death benefit of the policy is greater than the carrying costs. And lastly, the insurance companies win because they’re cash strapped in this poor economy and need revenue.

As more legislation and investor interest is created, look to Life Settlements to be validated as a consumer product that more financial professionals look to.

Located in La Jolla, California, Opulen Capital is a specialized financial services firm focusing on products and services tailored for senior citizens. Opulen Capital is one of the leading firms offering Life Settlement opportunities for high net worth clientele. We leverage unrivaled experience and exclusive relationships in the life settlement marketplace to structure, obtain, and sell life insurance products to maximize cash profits for our valued clients. Opulen Capital’s mission is to continue to provide the best solutions for our clients through the highest level of integrity and service. For more information, visit our website at http://www.OpulenCapital.com or call Opulen at 877-OPULEN-1 (877-678-5361)

Opulen Capital Life Settlement: Life Settlements to the Rescue

Opulen Capital Life Settlement

Even the big guns are turning to the life settlements market in an attempt to resurrect the faltering economy. News that AIG has become the first company to successfully securitize a pool of life settlement policies was big enough. But that the company is using a portion of the proceeds to pay down its loan to the federal government is precedent setting. AIG’s business unit Risk Finance led efforts to securitize life settlement policies with a face value near $8.4 billion. That transaction alone netted over $2 billion. The $8.4 billion is being transferred to the Federal Reserve Bank of New York in the form of securitization notes that will start AIG down the path to paying down the company’s $152 billion loan. The deal received an A.M. Best rating, though Best declined to publish the rating because the deal was private.

Securitizing via the life settlements market is not always successful. An attempt by Ritchie Capital Management to securitize $1.57 billion in life settlements was thwarted by allegations by the New York Attorney General that the policy originator, Coventry First, was bid rigging. (Most charges against Coventry First have since been dismissed.)

Other companies have attempted the market, but have fallen short of securitizing life settlement pools. The reason? There simply aren’t enough policies with short life expectancies to make securitization happen. Due to the shortage of viable life settlement policies, building a portfolio of life settlement policies could be a long, costly process for the investor, thus causing many investors to shy away from securitization deals.

In fact, A.M. Best released its research on the life settlement policies available and found that a mere 8 percent of policy holders attempting to enter the life settlements market have life expectancies determined by medical personnel to be 6 years or fewer. As a result, more people compete for these policies and fewer securitizations occur.

Clearly until the market for life settlements expands and buyers find that perfect storm of conditions, securitization of the life settlement market will be slow. So slow, in fact, that this was only the second rated securitization in the life settlement industry in the last 5 years. In what many contend was not a true life settlement securitization deal, Legacy Benefits securitized $70.3 million (this deal having been rated by Moody’s). However, the Legacy deal included annuities, which were used to enhance the collateral of the deal.

AIG’s use of the life settlements market to securitize and pay down its debt shows the flexibility of the industry, and how life settlements can be utilized in less traditional ways to increase wealth and alleviate financial strains.

Located in La Jolla, California, Opulen Capital is a specialized financial services firm focusing on products and services tailored for senior citizens. Opulen Capital is one of the leading firms offering Life Settlement opportunities for high net worth clientele. We leverage unrivaled experience and exclusive relationships in the life settlement marketplace to structure, obtain, and sell life insurance products to maximize cash profits for our valued clients. Opulen Capital’s mission is to continue to provide the best solutions for our clients through the highest level of integrity and service. For more information, visit our website at http://www.OpulenCapital.com or call Opulen at 877-OPULEN-1 (877-678-5361)