Life Insurance Settlement


Also found in: Acronyms.

Life Insurance Settlement

A payment on a life insurance claim. That is, when the policyholder dies, the insurer makes a payment to the beneficiaries. This payment is called the life insurance settlement.
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* Refer clients to lisa.org, the website for the not-for-profit Life Insurance Settlement Association, to help them identify transaction specialists who will comply with all appropriate ethical and regulatory requirements.
But note that North Dakota, West Virginia, Iowa, Nebraska, Florida, Montana, Nevada, Mississippi, Ohio, Kentucky, North Carolina, Tennessee, Connecticut, Indiana, Utah, Kansas, Colorado, and New Jersey refer to all life insurance settlements as "viaticals" and do not distinguish between the two classes of settlements.
"Life insurance settlements may increasingly become a core financial planning tool for these seniors as they look at all available assets to produce retirement income and address long-term care needs," Devine added.
Darwin Bayston, executive director of the Life Insurance Settlement Association, said that defining the difference between viaticals and life settlements is an ongoing goal for his organization.
DOUG HEAD, EXECUTIVE director of the Life Insurance Settlement Association (LISA), flatly denies that STOLI is a problem, and if it is, he says, it's a problem for the life insurance industry to police.
"The life insurance community recognizes that many circumstances may lead the owner of a life insurance policy to explore a life insurance settlement. We have always supported, and will continue to support, legitimate fife settlements," Hayes said.
* Life Insurance Settlement Association (www.lisassociation.org)
The amendments had the support of the Life Insurance Settlement Association.
"Policy lapses in this group are very significant," said Darwin Bayston, president and CEO of the Life Insurance Settlement Association (LISA).
Industry organizations, including the Life Insurance Settlement Association (LISA) and the European Life Settlement Association (ELSA), have launched initiatives to counter these "reputational headwinds." The efforts have yielded some positive results, the report notes, including the establishment of industry standards for recommending structuring life settlements; a clarifying of regulations governing the transactions; and legislation in some states mandating that insurers advise seniors of the option to settle as an alternative to lapsing or surrendering their policies.
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