By Carolyn S. Ellis
We talked with Michael Freedman, president of GWG, about how advisors and their clients can access this source of much-needed retirement funds.
LH&A: You’re in the business of helping seniors derive funds for retirement through the secondary life insurance market. Tell us about this opportunity.
MF: GWG Life is in the business of life settlements, which are the sale of a life insurance policy by a senior policyholder who no longer wants, needs, or can afford the policy. (We’re a subsidiary of GWG Holdings, a specialty finance company.)
As an alternative to lapsing or surrendering the policy he or she sells the policy for a market value which is on average 4-10 times more than cash surrender value. GWG is a buyer of policies licensed throughout the U.S. by state insurance departments. We’ve been in business for ten years, and we’re one of the most active buyers in the market.
To read the rest of the article, click here.