Insurance Companies Required to Inform Policy Holders That They Can Receive Additional Information About ALL of Their Options as it Relates to Their Life Insurance Policy
On June 26th, 2017, Florida Governor Rick Scott signed legislation (HB 1077) into law that will require insurance companies to inform policy holders that they can receive additional information about ALL of their options, as it relates to their life insurance policy. This law basically paves the way for a policy holder to learn that he or she may be able to sell their policy in the secondary marketplace for more money. In most cases, a lot more money than simply surrendering their policy, or worse yet, letting it lapse. This is a major event for consumer disclosure in our country because Florida has the highest percentage of senior citizens among its population. Every year, millions and millions of dollars of life insurance death benefit/face value is lapsed or surrendered by thousands of policyholders, who obviously didn’t realize there was another option or that it had additional value. This law should help to rectify this trend and give seniors more money to improve their lives, whether it helps provide money for LTC, housing, medical costs or simply to ease the daily burden of living on a fixed income. According to the Government Accountability Office’s 2010 report on the life settlement industry, an average policyholder can expect to receive an average settlement that is seven times greater than the its current surrender value. Not only will this benefit Florida seniors, but it will benefit Florida as well. More money in the hands of its citizens means more money in the economy of our state. Our association, LISA (Life Insurance Settlement Association), is currently hard at work in Rhode Island to make disclosure the law of the land there as well. So by my count, it appears that Florida joined Maine, Wisconsin, Kentucky, Oregon, Washington and New Hampshire in bringing some level of consumer disclosure language into their current law. That brings the total to seven states, and with a little luck, Rhode Island will make that total eight. Having a front row seat to watch this process for the better part of a decade, I realize how big this development is for everyone involved. It’s only a matter of time until another large state comes around and joins Florida in making disclosure of ALL of your options available when it comes to a life insurance policy that is no longer needed or is no longer affordable. Keep in mind, approximately $112,000,000,000.00 (12 billion with a B) of life insurance lapses every year for people over age of the 65 in the United States. If this law and others similar laws across America can help only a small percentage of those individuals on an annual basis, that’s a big number. The end result is that we ALL will benefit!
To find out how you and your clients can benefit with a life settlement, please call us at 1.866.326.5433 and speak with one of our life settlement professionals today.Consumers are beginning to find out about the life settlement marketplace via television, radio, in print, online and now by the insurance carriers themselves. Don’t miss the wave. Call today!