ORLANDO, Fla.–(BUSINESS WIRE)–The rising number of seniors in the U.S. who are financially unprepared for retirement may find a life settlement transaction to be an attractive option for generating retirement income, according to keynote speakers at the Life Insurance Settlement Association (LISA) 24th Annual Fall Life Settlement & Compliance Conference in Orlando.
In a life settlement transaction, the owner of a life insurance policy transfers ownership of their policy to a third-party buyer in exchange for an immediate cash payment. The buyer of the policy pays all future premium payments and receives the policy benefit upon the death of the insured.
LISA‚Äôs Fall Conference, the longest-running professional conference in the life settlement industry, was held October 21st-23rd at Disney‚Äôs BoardWalk Inn, in Orlando, Fla. The first keynote address was delivered by Bob MacDonald, the founder of LifeUSA Insurance and the former CEO of Allianz Life. Drawing on his decades of experience in the life insurance industry, MacDonald encouraged industry participants to ‚Äúreminisce about the future‚ÄĚ by visualizing where they want to go, then communicate that vision with employees and business partners who can help make it possible for them to achieve those goals.
‚ÄúThe life settlement industry has the potential to reach a larger audience of consumers in the years ahead and one way to perhaps achieve that is to focus on how life settlements can be a source of retirement income,‚ÄĚ said MacDonald.
The second keynote address was presented by Dan Veto, senior advisor at Age Wave, a leading consulting firm that specializes in understanding the aging population. Veto spoke to attendees about how the ‚Äúage wave‚ÄĚ of baby boomers will transform the way we think about, plan for and live out retirement in America. He noted that ‚Äútwo-thirds of the people in the history of the world who have attained the age of 65 are alive today.‚ÄĚ
‚ÄúThere are a number of powerful forces that are reshaping retirement in America, including the growing gap between the average life expectancy and the average retirement age,‚ÄĚ said Veto. ‚ÄúThese social and economic trends create rising opportunities for life settlements as an option for some seniors who may benefit from an ‚Äėequity release‚Äô of a life insurance policy. This may be an option for them to generate income to help fund their retirements.‚ÄĚ
In a featured session moderated by Scott Harris (chief marketing officer of Magna Life Settlements), guest speaker John Mitchell, CPA, shared a number of practical insights about how to better connect with seniors who may be interested in the life settlement option. Mitchell founded Reverse Mortgage USA, a company that grew to become the fourth-largest reverse mortgage lender in the U.S. before its acquisition. He explained a number of key learnings from his success working with seniors and possible applications to the life settlement business, such as the importance of educating seniors about their options ‚ÄĒ ‚Äúno hype, just straight talk,‚ÄĚ he advised ‚ÄĒ and always looking out for the best interests of the customer.
Other highlights from the conference included:
‚ÄúAs more seniors become aware of the fact that their life insurance policies could be assets they can sell to generate immediate cash, the life settlement industry will continue to enjoy steady growth as an alternative to lapsing or surrendering a life insurance policy,‚ÄĚ said Darwin M. Bayston, CFA, president and chief executive officer of LISA. ‚ÄúThe guest speakers and industry experts at this year‚Äôs conference shared important insights that provided attendees with deeper visibility into how they can take advantage of these attractive market conditions for the benefit of their businesses and investors as well.‚ÄĚ
For more information about LISA‚Äôs Industry-leading professional conferences, please go to www.lisa.org/events.
About the Life Insurance Settlement Association
The Life Insurance Settlement Association (LISA) is the nation‚Äôs oldest and largest organization representing participants in the life settlement Industry, with a current membership of more than 90 companies doing business in all 50 states, the District of Columbia, Puerto Rico and the U.S. Virgin Islands. The mission of LISA is to promote the development, integrity and reputation of the life settlement industry, to advance the highest standards of practice and professional development for the industry, and to educate consumers and advisors about a life settlement as an alternative to lapse or surrender of a life insurance policy. For more information, visit www.lisa.org.