Uncommon Solutions

 


Life Settlement - Life settlements provide individuals with the option to sell their insurance policies for more than the cash surrender value.

R.E. Harper Associates Position on Life Settlements

Premium Financing - This provides the individual the ability to finance the cost of a life insurance policy.

Annuity Arbitrage – This strategy may assist an older individual in achieving both income and/or wealth transfer goals by selling assets and reinvesting the proceeds in a Single Premium Immediate Annuity (SPIA). The client retains some (or none) of the SPIA income and gifts the balance after taxes to an Irrevocable Life Insurance Trust (ILIT) to pay premiums on a life insurance policy for the benefit of the heirs.

Investors should consult with their own professional advisor regarding the potential tax, estate, and legal considerations that may arise in connection with entering into a life settlements transaction. Proceeds from a life settlement transaction may be taxable under federal or state law to the extent the proceeds exceed the cost basis. The proceeds from a life settlement transaction may be subject to claims of creditors. The receipt of proceeds from a life settlement transaction may adversely impact eligibility for government benefits and entitlements. The amount received for the sale of the Policy may be impacted by the circumstances of the particular purchaser of the Policy, the insured’s life expectancy, future premiums, the death benefit, the terms of the Policy, and the current market for insurance policies, among other factors. The amount received for the sale of the Policy may be more or less than what others might receive for the sale of a similar policy. There may be high fees associated with the sell of a Life settlement.

Risk Management- The development of a risk management strategy can be described as a three phase process:

Phase 1 – Strategy Development

Phase2 – Implementation and Funding

Phase3 – Compliance Audit and Review

Click Here to See the Harper Services Group White Paper on Risk Management For Churches