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"With the retained death benefit option, we now have a new arrow in the quiver for policy sellers who no longer want to be saddled with expensive premium payments, but who also want their beneficiaries to receive a portion of the death benefit when they die," said
Butcher explained that the retained death benefit transaction is a true win-win for the senior policy seller because a life settlement provider assumes the premium payments for unwanted policies, but the policyholder retains a percentage of the face value payout for beneficiaries. In limited instances, the senior may also qualify to receive a cash settlement.
The growing popularity for the retained death benefit option comes at a time when the life settlement industry is undergoing a resurgence due to a number of factors. In addition to the nation's demographics where large number of seniors are edging closer to age 78 (considered the ideal age for a life settlement), economic factors are at play that will drive the market forward. On the funding side, additional money is entering the market from institutional investors. On the supply side, an increasing number of financially-strapped seniors view life settlements as a source for immediate cash to help pay for medical expenses, long-term care, or retirement. Still other seniors are questioning the wisdom of maintaining their universal life policies where the investment returns have plummeted due to the low interest rate environment.
As one of the nation's most experienced life settlement providers, Abacus Settlements continues to adapt its business model to meet the changing needs of the marketplace.
Founded in 2004,