The Lifeline Program Mobilizes New Capital to Purchase Retained Benefit Policies
Leading life settlement provider, The Lifeline Program today announced plans to provide new liquidity solutions for consumers by purchasing a portion of their existing life insurance policies. By selling only a portion of a policy, a transaction which the Lifeline Program calls Retained Life Benefits, beneficiaries retain a percentage of the policy death benefit without any future premium obligation. The Lifeline Program is actively acquiring life insurance policies with face values ranging from $1 - $20 million as well as life settlement portfolios from the tertiary market.
Retained Life Benefits transactions have had limited success due to regulatory concerns. However, the Lifeline Program, leveraging new capital and a commitment to the long-term prospects for the industry, sees tremendous opportunity for these transactions. Many life settlement companies had decided not to offer retained benefits to clients because of regulatory requirements which some believed strained their capital resources. In New York and California, for example, regulations require companies to pay the policy beneficiary the contracted death benefit if the policy lapses, intentionally or by mistake. While some viewed this as onerous, the Lifeline Program see it as an important consumer protection.
“We applaud insurance regulators in New York and California for adding these important consumer protections for retained life benefit transactions,” said Wm. Scott Page, president and CEO of the Lifeline Program. “We believe that having the opportunity to keep a portion of their life insurance policy intact for family members and loved ones at no cost to them provides a great option for seniors and retirees who are searching for ways to improve their golden years.”
According to Page, the Lifeline Program, backed by institutional capital sources using a long-haul approach, is uniquely positioned to purchase retained life benefit policies and portfolios containing these types of agreements.
"We are bullish about life settlements and retained death benefit contracts," said Page. "Our long-haul, buy-and-hold strategy positions our company as the best solution for seniors and wealth managers who are exploring life settlement options."