pportunity and have jumped on it in big numbers. They can make an irresistible offer to qualified seniors to provide free term insurance for two years, during which time the insured names their own beneficiary. The finance company sets up a life insurance trust, pays the premiums, There’s a quiet revolution in the insurance industry that’s freeing up literally millions of dollars to qualified senior citizens, and non-profit organizations stand to benefit by very significant donations from this historically generous group of donors.

In the last ten years, insurance companies have looked at the high lapse rate of term policies for folks in their 70’s and 80’s. The premiums were just too expensive and there was less perceived need by the insureds compared to the family-rearing years. Insurers were watching billions of dollars of premiums vanishing and decided to try something radical.

As a result, premiums for these policies have dropped up to 40% in recent years to lure seniors to continue paying, to rates that are not even based on actuarial data at this point in many cases. Millions of older folks have kept their policies a couple more years before lapsing, resulting in huge recovery of revenue for the insurers…and it resulted in something else too, a massive opportunity for investors.

Institutional investors, always on the lookout for decent return on investment, saw an opportunity and have jumped on it in big numbers. They can make an irresistible offer to qualified seniors to provide free term insurance for two years, during which time the insured names their own beneficiary. The finance company sets up a life insurance trust, pays the premiums, a

s, insurance companies have looked at the high lapse rate of term policies for folks in their 70’s and 80’s. The premiums were just too expensive and there was less perceived need by the insureds compared to the family-rearing years. Insurers were watching billions of dollars of premiums vanishing and decided to try something radical.

As a result, premiums for these policies have dropped up to 40% in recent years to lure seniors to continue paying, to rates that are not even based on actuarial data at this point in many cases. Millions of older folks have kept their policies a couple more years before lapsing, resulting in huge recovery of revenue for the insurers…and it resulted in something else too, a massive opportunity for investors.

Institutional investors, always on the lookout for decent return on investment, saw an opportunity and have jumped on it in big numbers. They can make an irresistible offer to qualified seniors to provide free term insurance for two years, during which time the insured names their own beneficiary. The finance company sets up a life insurance trust, pays the premiums,

miums vanishing and decided to try something radical.

As a result, premiums for these policies have dropped up to 40% in recent years to lure seniors to continue paying, to rates that are not even based on actuarial data at this point in many cases. Millions of older folks have kept their policies a couple more years before lapsing, resulting in huge recovery of revenue for the insurers…and it resulted in something else too, a massive opportunity for investors.

Institutional investors, always on the lookout for decent return on investment, saw an opportunity and have jumped on it in big numbers. They can make an irresistible offer to qualified seniors to provide free term insurance for two years, during which time the insured names their own beneficiary. The finance company sets up a life insurance trust, pays the premiums,

e kept their policies a couple more years before lapsing, resulting in huge recovery of revenue for the insurers…and it resulted in something else too, a massive opportunity for investors.

Institutional investors, always on the lookout for decent return on investment, saw an opportunity and have jumped on it in big numbers. They can make an irresistible offer to qualified seniors to provide free term insurance for two years, during which time the insured names their own beneficiary. The finance company sets up a life insurance trust, pays the premiums,

pportunity and have jumped on it in big numbers. They can make an irresistible offer to qualified seniors to provide free term insurance for two years, during which time the insured names their own beneficiary. The finance company sets up a life insurance trust, pays the premiums, and administers payments, while the senior is the policy owner. In addition, the senior can receive an equity payment of around 3% of the face value of the policy shortly after it’s in place, resulting in tens of thousands of dollars to them, sometimes hundreds of thousands…all without cost or risk.

At the end of two years, the senior has various options. Most will choose to sell the term policy on the secondary market, at which point the purchaser continues premium payments for the remainder of the term and eventually receives the death benefit upon the death of the insured. The senior can also keep the policy and take over premium payments themselves, generally only considered by the family in the event of an untimely diagnosis of a terminal condition.

Let’s look at how this worked in one recent example. A 78-year-old gentleman had a net worth of $15 million, with $5 million in existing life insurance, leaving him $10 million unused insurability and about a 10-year remaining life expectancy. He was offered an $8 million term policy, with all costs paid by the funding company, as well as $353,000 in ca