Making an Impact: Life Settlement Investing
Discover the impact of life settlement investing with Scott Romanek, Managing Director, and Taylor Garvey Senior Director of Marketing. In this short video, we delve into the life settlement industry, highlighting its win-win nature. Through real-world examples, learn how this innovative strategy can not only yield attractive returns for investors but also provides seniors with an opportunity to monetize an asset for essential financial relief.
TRANSCRIPT
Scott Romanek, Managing Director, AIR Asset Management
Taylor Garvey, Senior Director, Marketing, AIR Asset Management
Taylor Garvey: In a world of financial uncertainties, one investment strategy stands out for its dual impact of enhancing the financial security of seniors and impaired individuals while offering historically attractive returns to investors. Let’s discover the empowering world of life settlements.
Scott Romanek: Did you know that the life insurance market in the United States is 13 trillion dollars? Nearly 250 billion dollars worth of life insurance lapses annually without any benefit paid out by insurance companies. It’s a staggering figure that unveils a hidden opportunity - a chance to make a significant difference. Imagine transforming what’s often seen as a financial endgame into a beacon of hope. For many seniors, selling their unaffordable or unwanted life insurance policy means receiving between 5-7x more than the policy’s cash surrender value. Life insurance is often a senior’s largest asset. Life settlements can be a powerful tool to alleviate financial challenges, such as retirement needs or medical costs. In 2023 alone, this choice put an additional 640 million dollars in the hands of American seniors, offering them not just financial relief but also peace of mind. Let’s explore some real stories that illustrate this impact.
Taylor Garvey: Meet John and Mary. Mary needed to move into a senior care facility. A decision fraught with financial worry. Their solution? Converting Mary’s $275,000 life insurance policy into a plan that now covers her costs, offering them $132,000 to ensure Mary receives the best care possible.
Next, let’s meet Robert. At 72, with serious health conditions, he faced dwindling funds and rising medical bills. A life settlement gave Robert $200,000. A lifeline to cover his expenses and regain control over his life.
Consider the Williams family. Four siblings faced losing their mother’s life insurance due to high premiums. Their decision to settle the policy brought each sibling $45,000, relieving financial stress and preserving their mother’s legacy.
Finally, there’s Daniel, who faced a dire prognosis with pancreatic cancer. Daniel’s viatical settlement transformed his $500,000 policy into $320,000 of immediate support, offering hope during his toughest times.
These stories are just a few examples of how life settlements have provided not just financial relief but real, meaningful change in people’s lives.
Scott Romanek: With billions of dollars of life insurance lapsing annually, life settlements represent an opportunity to reclaim value from these policies, often recouping up to a third of the value that they’ve paid into it. Investors stand to gain financially and contribute significantly to the well-being of others, turning what could be lost value into substantial support.
Taylor Garvey: Investing in life settlements means investing in a society where financial security and compassion go hand in hand. Join us in making a difference. Discover the potential of life settlement investing today.