Exploring Life Settlements with Rob Haynie | Ep. 352

• Rob explains a life settlement as the sale of a life insurance policy to a third-party investor for more than cash surrender value but less than the death benefit.

A life insurance policy is an asset just like your home... You can sell it. You can keep it. You can gift it.

• Example: 75-year-old with $1M policy and $50K CSV receives $250K instead of surrendering.

• The industry is regulated in 45 states + DC and follows NAIC/NCOIL Model Act guidelines.

• Every transaction includes a 15-day rescission period; Rob has seen only three rescissions in his career, all due to death during the window.

A life settlement only takes place when you're getting more money than you can otherwise get any other way.

• Universal life policies are the most commonly purchased; term policies inside the conversion window rank second.

• IULs, GULs, and VULs can also qualify. Sellers should submit policy details for an accurate appraisal rather than guessing eligibility.

• Buyers require full medical records and detailed history to calculate precise life expectancy, unlike traditional insurance underwriting.

• The only disqualifiers are being too healthy (long life expectancy), having excessive loans, or not owning a policy at all.

• Ideal candidates are age 60+ who no longer need or can afford their policy.

Why not do the same thing with your life insurance policy? Because in many instances, this is either your second, third, or maybe even your largest financial asset.

• Appraisal is free and reveals value even if the owner decides not to sell.

• Institutional investors buy hundreds or thousands of policies, often holding to maturity.

• Pension funds like the uncorrelated returns and long duration (life expectancies now average ~20 years).

• A secondary/tertiary market allows policies to be traded after initial purchase.

• Funding long-term care or annuities
• Paying for family reunions or vacations
• Gifting policies to charities for tax benefits and legacy naming rights

We've had people gift their life insurance to philanthropic organizations... They were able to, the last 10 years of life, go and enjoy the ballet, walk through the doors with their name above.