A Leader in Life Settlement
LightHouse Life is led by a team with over 80 years of experience in sourcing, originating and managing the purchase of life insurance policies in the life settlement market. LightHouse Life has unmatched expertise in working with financial professionals and has been at the forefront of establishing the highest standards of conduct for life settlements, and advocating for transparency and accountability in this market.
What is a Life Settlement?
A life settlement is the sale of an existing life insurance policy to a third party for a market value. When a policy is no longer needed or becomes unaffordable, it is most often lapsed or surrendered back to the insurance company for little or no value to the policyowner. Those who instead sell their policies receive on average four to 11 times more money than if they terminated their policy, according to government and university studies.
Who Should Consider a Life Settlement?
Seniors who are eligible for a life settlement are typically over the age of 70 and own a life insurance policy with a face amount of at least $100,000, and where the insured under the policy has had a change in health since the policy was issued. Qualifying seniors who don’t want or need, or can no longer afford, their life insurance policies should have their policy appraised for its life settlement value.
Why Policyowners Choose a Life Settlement?
The vast majority of life insurance policies are lapsed or surrendered as a result of changing needs or life circumstances. Some policyowners let their policies lapse because there is no longer a beneficiary through divorce or death, or because the children have grown, or premiums get too expensive, or because they need additional retirement resources, or because they need to qualify for Medicaid. Whatever the circumstances, surrendering or lapsing a policy back to the insurance company often leaves policyowners short-changed or empty-handed.
Life settlements provide seniors and their families with significantly more money than if the policy was turned back over to the insurance company. The funds received from a life settlement help seniors meet their retirement goals and needs, increase or maintain their standard of living, and pay ongoing or future unanticipated health care and long-term care costs.
Are Life Settlements Legal?
Yes. Americans have the right to sell their life insurance policies. More than 100 years ago, the US Supreme Court ruled that life insurance policies enjoy “the ordinary characteristics of property,” and part of its value as property is its ability to be sold.
Are Seniors Well Protected in a Life Settlement Transaction Through Law & Regulations?
Yes. While life settlements are legal throughout the entire nation, 43 states—covering more than 90 percent of Americans—have comprehensive life settlement laws that protect seniors who seek to sell their life policies. The laws establish the highest levels of transparency and accountability of any senior financial service transaction, including consumer disclosures, competency requirements, privacy protections, anti-fraud measures and licensing of participants in life settlements. According to the National Association of Insurance Commissioners, out of more than 466,000 consumer complaints received by state insurance regulators since the start of 2014, only two involved life settlements.
LightHouse Life is led by an experienced team of senior executives from the market’s leading players to form the premier team in the secondary life insurance market.
LightHouse Life has unmatched expertise in developing and executing successful direct origination strategies in the life settlement market, and has demonstrated experience across key functional areas.
A Resource for Financial Professionals
LightHouse Life is the preeminent resource for financial professionals looking for knowledge and insight about life settlements, and assisting policyowners in the sale of their life insurance policies.
LightHouse Life helps financial professionals grow their practice through life settlements, meet their professional responsibility, and help policyowners realize a market value for unwanted, unneeded or unaffordable life insurance policies.