In September, we reported that a 2010 survey found that 40 percent of seniors have let a life insurance policy terminate. However, a more recent survey, conducted by International Communications Research (ICR) for the Lifeline Program, found that number to be considerably higher at 55 percent. Yet, large numbers of producers and consumers still know little or nothing about life settlements and, as a result, the opportunity to maximize the value of a policy about to be lapsed or surrendered is lost.
To remedy this problem, the Life Insurance Settlement Association (LISA) has launched The LISA Awareness and Education Program and created the Life Settlement Center for Education. The goal of the center is to increase public awareness of life settlement option for those who have polices they no longer need, want or can afford; and to strengthen the visibility of the life settlement industry.
To this end, the center will make information available by enhancing the LISA website and creating other programs for baby boomers, seniors, trade associations, academics and professionals like attorneys, CPAs and trust officers to make them aware of life settlements.
Since insurance advisors are the key resource for their clients' insurance information, LISA has created a life settlement course to help producers obtain the knowledge needed to inform their clients about life settlements. This one-hour course sets forth the basics about life settlements and describes how the process works, shows how to recognize situations that often represent life settlement opportunities and identifies the parameters for life settlement prospects.
