About Reverse-Life Insurance > Reverse-Life Insurance® Overview
What is a Reverse-Life Insurance ?
A Reverse-Life Insurace is the sale of a life insurance policy that is owned by a senior citizen, age 65+, or a person with a life expectancy of 15 years or less, for a lump-sum of cash today that is greater than the cash surrender value of the policy, but less than the death benefit of the policy.
Who buys the policy?
Christian Stanley makes markets, both domestically and internationally, with over 20 institutional funders that provide seniors with lump-sum cash payments in exchange for life insurance policies that are no longer needed or wanted. The funding institution is the final purchaser of the senior citizens life insurance policy.
What makes Christian Stanley unique?
Christian Stanley is engaged in a variety of advanced applications of life settlements that enables our professionals to match your policy with the funder, project, securitization pool, or lender that values the characteristics of your policy the most. This enables our bankers and traders to negotiate the highest terms for your policy.
How does Christian Stanley maximize value?
By creating a competitive auction market, we are able to consistently earn seniors, on average, 4-times the cash surrender value offered by the insurance carrier. Why are purchasers willing to offer more than the cash value of a life insurance policy? The cash surrender value of a life policy does not reflect the true economic value of the asset in a competitive market environment because it is simply the lowest value, or floor value, of the life insurance policy. Allowing parties external to the origination of the policy to submit a bid is necessary if one is to earn the fair market value of the life insurance policy.
Do I own my policy?
The life settlements market is referred to as the secondary market for life insurance policies. Life insurance is private property. Like cars, homes, stocks, and bonds, it can be sold in accordance with applicable laws. Our industry has exploded from only $50 million (US) in 1990 to over $4 billion (US) in annual transactional volume in 2002. The Wharton School of Business projects that our industry will reach $15 billion in annual transactions by 2006.
