The question was: Several of my older clients have been adversely affected by the recent market downturn. Should I suggest a life settlement as a way for them to gain some needed liquidity?

 

The answer is: While nobody can accurately predict how the world will look once the dust settles from recent and current (and maybe most importantly) future events such as rescues, bailouts, mergers, etc., one thing is certain.

 

That one certainty is: the world as we knew it will be gone and people, now more than ever, will need to reexamine their financial holdings and their comprehensive estate planning to determine what products they need in terms of their individual financial goals and asset protection going forward.

 

Life insurance will certainly be one of those items that needs to be examined to see if what they currently have in place is needed or in fact, could be replaced with a far superior and much more economical product that achieves the desired result.

 

Our service, in the life settlement industry, will continue to be free non-binding appraisal of an asset that may turn out to be more attractive than ever to the capital markets. The mere fact that it will remain an uncorrelated asset will remain attractive to existing players and even bring new players to our marketplace.

 

We all knew downturn was coming (much like a hurricane that is approaching the shoreline). We just didn't know the specifics of what the aftermath would look like—and might not still for some time.

 

As far as suggesting a life settlement as an option to get some liquidity, the marketplace is here today and I expect once our Congress passes an acceptable "bailout" and banks begin to lend to one another again, there will be nothing but a bright future for the secondary marketplace.

 

Rob Haynie
Managing Director
Life Insurance Settlements, Inc.
Fort Lauderdale, Florida
rob@lisettlements.com
www.lisettlements.com