Policy Holders

The need for transparency along with a wide range of state-by-state regulations and standards require a company uniquely designed to ensure life settlements are completed according to a fiduciary standard of care.  Merlin Capital Group Inc., life settlements has a customized set of tools and processes which allow it to effectively serve the unique needs of individual policy owners and fiduciaries alike.

Reasons to consider a Life Settlement: Why Sell? A life settlement is a no longer wanted, needed or affordable life insurance contract that an insured (typically 75 years of age or older) sells to a third party for more than the surrender value offered by the insurance company but less than the face amount of the insurance policy. The new owner becomes the beneficiary of the death benefit and assumes responsibility for the payment of premiums until maturity.

The life settlement market has become, in essence, a lifeline to those that need or want liquidity from their life insurance. In 2010, the Government Accountability Office (GAO) reported, “Life Settlements deliver almost 8 times a policy’s surrender value to seniors.” The findings were based on a sample of over 1,000 life settlement transactions, and showed that seniors would have received $37.4 million if they surrendered their policy instead, thanks to Life Settlements, received over $269 million from life settlement transactions.

Typically, life settlements are considered by a policyholder for any of a variety of reasons:

• Policy beneficiary is deceased or no longer has a need for the funds that would be provided.
• Policy holder has purchased replacement coverage to better suit his/her needs.
• Financial obligations or unforeseen financial needs have occurred.
• As an affordable way of gifting to family members or contributing to charity.
• Premium payments have become unaffordable.
• Undergoing bankruptcy liquidation or divorce.
• Estate taxes are no longer an obligation/changes in estate law.
• Desire to liquefy an inactive asset.
• Buy/sell funding is no longer an obligation.
• Payout or change in deferred compensation.
• A company’s need for a key man policy has changed or been eliminated.

To answer all your questions about life settlements and how a life settlement can be a valuable option for you, please call us today 760-560-8290.