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Life Insurance Settlements -Investing in Life Settlements

Life Insurance Settlements -Investing in Life Settlements

As life settlement brokers in the Life Settlement industry

, it is becoming more and more apparent to us Integrity Life Solutions, LLC, that investments in life settlements may not only be prudent from a diversification standpoint, but also relative to internal rates of return, or return on investment. Life Settlements are generally non-correlated investments with possible yields from 10% to in excess of 20% on a net basis, even after accounting for fees and other expenses. The slowdown of purchases of life insurance policies on seniors and the lack of liquidity in the marketplace has made this truly a buyer's market.

But we find that a lot of institutional investors are kicking the tires again. The market has stabilized in the sense that certain illicit behaviors have all but ceased (STOLI and illicit premium finance transactions) and the Internal Revenue Service has opined in two Revenue Rulings last year (IRS Revenue Ruling 2009-13 and IRS Revenue Ruling 2009-14) dealing with the tax impact on the seller of a life settlement, and the investor, respectively. Although these IRS Revenue Rulings may not have the effect of adjudicated or statutory law, they do provide some clarity as to tax rules as they apply in the Life Settlement arena.

In the first IRS Revenue Ruling 2009-13, the Service asks and then answers two questions:

1. What constitutes a gain?

2. To the extent there is a gain, how is it characterized ordinary or capital?

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Integrity Life Solutions offers continuing education credits to CPAs, CFPs, and NJ insurance licensed agents

Life Insurance Settlements -Investing in Life Settlements

By: erez rotemAbout the AuthorErez Rotem is president of Integrity Life Solutions.Integrity Life Solutions is located in Maplewood NJIntegrity Life Settlementsis a life settlement broker.They negotiate the transaction between the seller and the Buyer. Their expertise is in obtaining the highest possible value for your policy from only reputable financial institutions. Integrity Life Settlements is affiliated with other professionals including attorneys, accountants and actuaries who can provide you with independent financial advice. If you prefer, IntegrityLife Settlements will work with any of your trusted financial and legal advisors. In either case, a due-diligence will be performed prior to any transaction. (ArticlesBase SC #3333622) guest:  register | login | search     IP( England / Spalding Processed in 0.015666 second(s), 6 queries , Gzip enabled debug code: 16 , 2889, 953,
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