July 2007 Newsletter

To our valued clients:

The LifeOptions team is excited to provide this second edition of our Life Settlement Industry Newsletter to you. Once again, you'll find valuable information about the growing life settlement marketplace, capital sources, industry news, sales tips and marketing insights.

The year 2007 is proving to be the biggest year yet for life settlement transactions with nearly $30 billion of face amount projected for closings, representing hundreds of millions of dollars in incremental income to seniors over and above cash surrender value. We can all be proud of the value we are creating for our senior clients through the power of the secondary market for life insurance. We ask that all our readers fulfill their fiduciary roles and proactively present the life settlement alternative to their senior clients.

Please let us know how we can support you in creating value for your clients using Life Settlements. We believe our expertise and service can provide significant benefit to you.

Ted Pryor, CEO

Jim Pugliese, President

LifeOptions Corner

Who's New at LifeOptions

Expanding Market Opportunities through Life Settlements - by Jim Pugliese, President, LifeOptions

One of the many challenges for financial advisors today is to present clients with viable alternatives that are value-added, and it is appropriate to look beyond traditional investments for new product opportunities. One area that is gaining considerable visibility and acceptance in the financial planning community is a life settlement. Life settlements, or Senior Life Settlements, offer you another tool to help your clients properly manage their wealth.

To read the full text of "Expanding Market Opportunities through Life Settlements," click here for PDF.

You Have an Offer That You and Your Client Like. Now What? - by Patrice Lala, Senior Case Manager, LifeOptions

You have come a long way through the life settlement process. You and your client decided that this was the best course of action. Medical records and proper illustrations were collected. Documents were dug out of files. A broker was selected. Multiple bidders were approached. Bids were received and hammered out. After several weeks or even months, a final bid has been accepted. Now you want to close the deal without running into any time-consuming hurdles that can set you and your client back weeks or months. Here are the “Top Ten” ways to insure a smooth closing and to quickly funding your case.

To read the full text of "You Have an Offer That You and Your Client Like. Now What?" click here for PDF.

LISA – The Life Settlement Process Presentation

The Life Insurance Settlement Association has come out with a presentation describing the life settlement process. To view the entire presentation, click here for PDF.

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In The News

Settling Premium Finance Policies

As the life settlement industry continues to grow, agents are increasingly likely to come into contact with one of the subsets of life settlement transactions: those involving premium financed insurance polices.

To read the full text of "Settling Premium-Financed Policies Can Be Thorny for Agents, Clients," which appeared in the June 07 issue of National Underwriter, click here for PDF.

A Perspective on the Growing Controversy of Life Settlements

Life settlements continue to generate controversy, but continue to be popular, viable solutions for some of today’s consumers.

To read the full text of "A Perspective on the Growing Controversy of Life Settlements," click here for PDF.

Life Settlement: An Attractive Investment Vehicle

Institutional investors are constantly searching for new opportunities to improve portfolio returns and diversify risk. New markets on asset classes can be challenging, especially today where executives face regulatory and accountability pressures. When pursuing new, profitable long-term growth solutions, intelligent risk-taking is paramount.

To read the full text of "Life Settlement: An Attractive Investment Vehicle," which appeared in Maple Life May 2007 Newsletter, click here for PDF.

Changing the Face of Senior Life Settlements

Financial professionals are routinely confronted with their clients' economic challenges and therefore, must consistently reevaluate objectives, strategies, and choices. Today's environment forces agents to adapt and consider new-and-improved financial products. So, what should seniors expect from a trusted advisor during times like these? Simply put, they want the security of a solid financial plan that will allow them to live out their remaining time on their own terms.

To read the full text of "Changing the Face of Senior Life Settlements," click here for PDF.

Fasano Announces Performance Results

Fasano Associates announced the results of a new analysis of its accuracy in estimating life expectancies.

To read the full text of "Fasano Announces Performance Results," click here for PDF.

Life Insurers Say Life Settlements Help Consumers

Concurrent with the start of the Life Insurance Settlement Association's (LISA) 12th bi-annual spring meeting, which concluded today in New York, the National Association of Insurance Commissioners (NAIC) on Wednesday held a public hearing, "Premium Financing of Life Insurance, Life Settlements, and the Relationship with State Insurable Interest Laws."

To read the full text of "Life Insurers Say Life Settlements Help Consumers," which appeared in Market Wire, click here for PDF.

Untapped Potential

The consensus among experts is that a family must have at least $150 million in net worth to maintain an individual family office, and the Family Office Exchange's (FOX) average client holds more than $300 million in liquid assets.

To read the full text of "Untapped Potential," which appeared in the July 2007 issue of Worth Magazine, click here for PDF.

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Sales Tips

The 100 Best Sales Ideas Ever

You want to be at the top of your sales game, right? You want that competitive edge, that Brian Tracy agility with your sales process, right? That's what we thought and that's how we came to create this all-inclusive feature with the top tips to successful selling.

To read the full text of "The 100 Best Sales Ideas Ever," which appeared in the June 2007 issue of Senior Market Advisor, click here for PDF.

8 Steps to More Referrals

Do you want to attract more high-quality clients through referrals? Then check out the following list of eight things you need to do to get there.

To read the full text of "8 Steps to More Referrals," which appeared in the June 2007 issue of Agents Sales Journal, click here for PDF.

12 Ways Agents Screw Up Sales Meetings – and How to Fix Them

Can you relate to this: You’re looking across your desk into the face of a couple who would be perfect clients for you. You know what you can provide is perfect for them and you’re 99 percent sure they will accept your proposal. Then something goes wrong. They walk, and you don’t know why. Sound familiar?

To read the full text of "12 Ways Agents Screw Up Sales Meetings and How to Fix Them," which appeared in the May 2007 issue of Agents Sales Journal, click here for PDF.

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Compliance & Regulatory Update

Lone Star State Warns Against STOLI Solicitations

Texas officials have sounded the alarm on what they say appears to be a sudden wave of invitations to agents to participate in “stranger-owned” life insurance deals.

To read the full text of "Lone Star State Warns Against STOLI Soliciations," which appeared in the June 6, 2007 online newsletter of National Underwriter Life & Health, click here for PDF.

NAIC To Treat 5 Drafts As Models

Members of the executive committee of the National Association of Insurance Commissioners granted full model status to 5 model proposals here Sunday during the NAIC’s summer meeting.

To read the full text of "NAIC To Treat 5 Drafts As Models," which appeared in the June 5, 2007 online newsletter of National Underwriter Life & Health, click here for PDF.

NAIC Adopts Viatical Settlement Changes

Members of the National Association of Insurance Commissioners voted here today to approve amendments to the Viatical Settlements Model Act. The Viatical Settlements model revision was the first measure to be adopted under new NAIC procedures for screening proposed models.

To read the full text of "NAIC Adopts Viatical Settlement Changes," which appeared in the June 5, 2007 online newsletter of National Underwriter Life & Health, click here for PDF.

AALU VP Discusses Life Settlements Model Provisions

An Association for Advanced Life Underwriting official talked about efforts to revise the National Association of Insurance Commissioners life settlement model. The official, Tom Korb, a vice president at the AALU, Falls Church, Va., gave his views on the prospects of the NAIC, Kansas City, Mo., approving changes already proposed, and he talked about other changes the AALU also is seeking.

To read the full text of "AALU VP Discusses Life Settlements Model Provisions," which appeared in the May 2, 2007 online newsletter of National Underwriter Life & Health, click here for PDF.

Sioux State Governor Signs Viatical Bill

North Dakota Gov. John Hoeven has signed S.B. 2268, a bill that updates the state's viatical settlement laws. The North Dakota House passed the bill 75-18 in March, and the state Senate approved the bill unanimously earlier that month.

To read the full text of "Sioux State Governor Signs Viatical Bill," which appeared in the April 17, 2007 online newsletter of National Underwriter Life & Health, click here for PDF.