Deprecated: mysql_connect(): The mysql extension is deprecated and will be removed in the future: use mysqli or PDO instead in /home/a26f9f83/public_html/articles/includes/config.php on line 159
A Revolutionary Fundraising Opportunity -- Life Settlements > NetSparsh - Viral Content you Love & Share

A Revolutionary Fundraising Opportunity -- Life Settlements

Amid fundraisers' growing concerns about the current charitable giving climate, dampened by the erratic stock market and shaky economy, a new fundraising opportunity has emerged ? Life Settlements.

What is a Life Settlement? A Life Settlement is the sale of an existing life insurance policy for a lump sum of cash that is more than the cash surrender value. A life insurance policy is property, like a car, house, stocks and bonds that can be legally sold in accordance with applicable laws. Through a Life Settlement, a policy owner can realize value today from an asset that is generally thought to only have a benefit when the insured passes away.

How can Life Settlements be used in Fundraising? There are many variations and complex estate and tax planning strategies that can be employed when utilizing Life Settlements in a planned giving program. However, in its simplest terms, a Donor who owns a life insurance policy gives the policy to the philanthropic organization that in turn immediately sells the policy for a lump sum of cash through a Life Settlement.

In order for a policy to be eligible for a life settlement, it must meet the following criteria:

  • Insuring an individual over age sixty-five (65) or with a serious illness

  • With a face value of at least $100,000

  • Issued over two (2) years ago
Donor Benefits:
  • Making a donation to his/her favorite philanthropic organization without depleting cash reserves or losing income-producing assets;

  • Getting a tax deduction for the fair market value (selling price) of the life insurance policy instead of only the cash surrender value;

  • Being able to see their donation put to use during their lifetime rather than after their death if the organization did not utilize a Life Settlement;

  • Eliminating the requirement of continued premium payments on the policy;

  • Removing a taxable asset from their estate if the policy was individually held. Organization Benefits:
  • Receive a donation from a Donor who may not have otherwise been in a position to contribute at all;

  • Collect a lump sum of cash today instead of having to wait for the insured's death to collect the proceeds;

  • Not having the financial burden of paying premium payments to keep the policy in force;

  • Providing a valuable option to the Donor that furthers their tax and estate planning objectives and invites the opportunity for future/additional gifts.

  • Improved annual budget forecasting ability How Does a Life Settlement Work?

    Once the Donor is considering gifting a life insurance policy to the organization, the life insurance policy should be appraised. Typically, a Life Settlement Broker can determine its eligibility for a life settlement and will undertake it to obtain the highest offer for the policy.

    The value of a life insurance policy is determined by a number of factors, including, but not limited to, the age and medical condition of the insured, type of insurance policy, rating of the issuing insurance company and amount of premium payments to keep the life insurance policy in force. Most types of insurance policies can qualify, including universal, whole life, and converted term. When a mutually agreed upon price is determined for the life insurance policy, the organization that now owns the policy is paid a lump sum in cash, the ownership and beneficiary rights are transferred to the purchaser. All future premium payments are the responsibility of the purchaser and upon the death of the insured, the death benefit is payable to the purchaser. The cash proceeds from the Life Settlement may be used by the organization in any way ? there are no restrictions regarding the use of the funds. The money may be invested or spent on current projects. Because some Life Settlement Brokers offer fundraising support, it makes sense for organizations to partner with them for their expertise.

    Life Settlement Regulations

    As of June, 2003, eighteen (18) states have enacted statutes addressing the sale of life insurance policies insuring non-terminally or chronically ill individuals and an additional seventeen (17) states have laws that only regulate the sale of life insurance policies insuring terminally or chronically ill individuals. Fifteen (15) states do not regulate the transaction at all.

    Donated Life Insurance Policies

    In addition, most philanthropic organizations currently own life insurance policies that have been donated in the past. If there is a need for funds sooner rather than later or if the premium payments are becoming burdensome, the organization can utilize Life Settlement transactions to sell those policies for lump sums of cash and put the money to work right away.

    Life Settlements are powerful arrows in the quivers of professional fundraisers ?

  • Generating money for their organizations by encouraging current gifting of life insurance policies

  • Turning already donated life insurance policies into cash

    About The Author

    The author, Jolene D. Fullerton, practicing attorney for eighteen (18) years and former Director and Vice President of the Viatical and Life Settlement Association of America, the industry's trade association, is General Counsel for a leading Life Settlement Broker company, First Secured Life, LLC located at 1926 Victoria Avenue, Fort Myers, FL 33901; Telephone: 877-968-7785, Website: www.firstsecuredlife.com/nonprofit.html

    jolene.fullerton@firstsecuredlife.com

    In The News:

    This RSS feed URL is deprecated, please update. New URLs can be found in the footers at https://news.google.com/news

    Legal Talk Network

    Non-Qualified Structured Settlements Part 1: Tax Reform Impact
    Legal Talk Network
    Unlike physical injury cases which receive tax-free status in a structured settlement, cases such as age and race discrimination, sexual harassment, wrongful termination and divorce do not. Yet claimants can still structure these non-qualified cases ...


    Portfolio Financial Servicing Co. Announces New Website Launch
    PR Web (press release)
    PFSC is a third party private label servicer of leases and loans, structured settlements, lottery prize and royalty-type contracts and other installment-based contracts for both commercial and consumer portfolios. Since 1992, PFSC has been a leader in ...


    Yahoo News

    ConocoPhillips says PDVSA agreed to pay $2 bn to settle dispute
    Yahoo News
    The deal underscored PDVSA's commitment to reaching structured settlements with creditors, the statement added. The dispute dates back to the 2007 takeover of two of the American company's Venezuela units under late president Hugo Chavez.

    and more »

    DRB Announces First Award to Be Paid on Bounty Program for Whistleblowers
    PR Newswire (press release)
    4, 2018 /PRNewswire/ -- DRB Capital, LLC ("DRB") today announced the first award to be paid under DRB's "Stop Structured Settlement Fraud" Bounty Program. The bounty will go to an individual who provided information to DRB about an entity engaged in ...


    The Globe and Mail

    Insurer Great-West Lifeco seeks to sell $2 billion worth of contracts: sources
    Reuters
    The portfolio of run-off insurance business being marketed by Great-West includes structured settlements, pay-out annuities, and corporate or bank-owned life insurance (COLI/BOLI), the sources said. Some group benefits policies are also part of the ...
    Great-West Lifeco seeks to sell $2 bln worth of contracts: Reuters ...PE Hub (blog)
    Great-West Lifeco reportedly plans to sell US$2 billion in insurance ...Insurance Business

    all 5 news articles »

    The State Liability Amendment Bill | a missed opportunity for change
    Lexology
    The State Liability Amendment Bill, as published in Government Gazette No. 41658 of 25 May 2018, in its preamble, aims to amend the State Liability Act, Act 20 of 1957, seeking to “provide for structured settlements for the satisfaction of claims ...


    Forbes

    What 'Adult Entertainment,' Puerto Rico And Chapter 9 Bankruptcy Have In Common
    Forbes
    Correspondingly, a cascade of varying liens and carve-outs developed as revenues from fees, sales taxes, taxes on incremental property values, tolls, fuel taxes and structured settlements—to list a few—were codified in bond documents as secured liens ...


    Legal Examiner

    199A 20% Deduction for Attorneys? Attorney Fee Structure
    Legal Examiner
    Much like a traditional structured settlement, attorneys participating in our Attorney Fee Deferral Program must elect periodic payment obligations from either the defendant or a QSF administrator in exchange for a release. Since Metlife received ...


    Fairfield Current

    Somewhat Favorable News Coverage Somewhat Unlikely to Affect Asta Funding (NASDAQ:ASFI) Stock Price
    Fairfield Current
    The company operates through four segments: Consumer Receivables, Personal Injury Claims, Structured Settlements, and GAR Disability Advocacy. The Consumer Receivables segment involved in the purchase, management, and servicing distressed ...


    Accounting Today

    Tax Fraud Blotter: A cell in her future
    Accounting Today
    According to court documents and statements in court, from 2009 through September 2017 Bischoff defrauded more than two dozen clients of his financial advisory business by falsely promising to invest their money in real estate, structured legal ...

    Google News

  • Structured Settlement Factoring

    Have you received a structured settlement recently? A structured settlement... Read More

    Investing in Structured Settlements

    Often some derelict will be awarded some huge amount of... Read More

    A Structured Lawsuit Settlement Seemed Like a Good Idea at One Time

    You are receiving payments spread out over months, years, even... Read More

    Offshore Asset Protection Trusts for US Citizens

    When it comes to discussing offshore anything and US citizens... Read More

    A Revolutionary Fundraising Opportunity -- Life Settlements

    Amid fundraisers' growing concerns about the current charitable giving climate,... Read More

    When Should You Not Cash Out Your Annuity?

    You should not cash out your annuity when it's not... Read More

    Surviving High Debt States

    Are you more likely to have more debt according to... Read More

    Keeping the Lawsuit End in Mind

    2 key points to stay focused on, as you are... Read More

    What is a Trust and what are the Benefits?

    Trusts are becoming a popular way to structure business and... Read More

    If This Describes You, Dont Cash out Your Annuity

    There are companies that purchase future payments. Personal injury settlements... Read More

    What is Structured Settlement?

    Because it is tailor-made for individual cases, the structure may... Read More

    Should You Sell Your Structured Settlement?

    The courts have just awarded you a settlement in the... Read More

    Making Backwards Choices

    I was reading this past week about a woman who... Read More

    Individual Voluntary Arrangements. IVA

    What is an IVA?There is an alternative to bankruptcy called... Read More

    Structured Settlement as an Investment Vehicle

    You always hear people talking about the latest investment vehicle... Read More

    What is a Structured Settlement

    A Structured Settlement is an agreement between a personal injury... Read More

    The Target Capital Structure

    Firms can choose whatever mix of debt and equity they... Read More

    Options for Lawsuit Settlement Winners Receiving Periodic Payments

    On January 22,2002, President George W. Bush signed into law... Read More

    Lucky

    Have you ever looked around and wondered how everyone is... Read More

    Consider a Structured Settlement?

    Structured settlements have been around for a long time however... Read More

    Class Action Lawsuits

    First of all, let me say that anyone who has... Read More

    Structured Settlement ? Guaranteed Income for those with Disabilities

    Up until twenty years ago, anyone who won a lawsuit... Read More

    Annuity Transfer - What Are the Risks

    Many people who know in the back of their minds... Read More

    Cash For Structured Settlements - The Smart Way

    For most people when they buy a house it is... Read More

    The Cost of Not Having Money

    The self-esteem factor of not having enough money is underestimated.... Read More