Life Insurance For Seniors-New Financial Approaches

I love the concept of immediate annuities. Particularly if someone else is footing the bill. Can you imagine that some Institutional Funder is willing to put money up in an immediate annuity, and have a portion paid to you for life? That's right. The senior pays nothing and the greatest part is that the funder hopes (and prays), the Senior lives forever. These immediate annuities pay for life, so the Continue reading

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So, basically what we have here is a mortality arbitrage being done by the insurance carrier (issuer), and the institutional funders on the other hand. The insurance companies are using their internal underwriters to determine life expectancy, based upon their reading of a client's medical records, and utilizing internal mortality tables. The funders are using sophisticated financial models that look at premiums and life expectancy. These institutional funders utilize independent Life Continue reading

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Today I'm going to rant a bit about the holier than thous-the life insurance community and the Senior Life Insurance market. What a wacky world, games of intrigue, and cat and mouse, driven, of course, by the desire for short term profits. The games are all about perception. One group, the life insurance companies, believe their pricing models and structure to be infallible; the newcomers, who represent the financial institutions Continue reading

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The life settlements market has grown from a tiny speck only five years ago to a multi billion dollar industry today. Did you know that institutional buyers are willing to pay you for your life insurance policy? These buyers range from US and Foreign banks, Hedge Funds, Pension Funds, College Endowments, and even the Insurance companies themselves, like Warren Buffet's Gen Re (reinsurance) that has purchased over $500,000,000 of these policies. Almost Continue reading

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An immediate annuity for seniors whereby the senior never had to put up a dime or offer any collateral? My mind went blank. I was in total shock. How could this be, I asked? Well the answer was that like premium financing, where the funders are looking at mortality spreads, the institutional boys are also looking for these same spreads when it comes to immediate annuities. This may seem complex, but it's Continue reading

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