SOURCE: Legacy Funding Group, Inc.

January 17, 2008 09:10 ET

LegacyLoan™ Now Available to More Policy Owners

New Lifetime Policy Loan Poses Major Threat To Secondary Market

NEW YORK, NY--(Marketwire - January 17, 2008) - To allow more life insurance policy owners to stop paying premiums, while keeping their policies in force for life and receiving greater benefits than they would receive from selling their policies in the so called secondary market, Legacy Funding Group, Inc. announced today that it has expanded the scope of its lifetime policy-funding vehicle, LegacyLoan™, in the following three ways:

1) The minimum size of qualifying policies has been reduced to $500,000,
   and over time further reductions are anticipated;

2) The minimum age of qualifying insureds has been reduced to 70, and
   waived completely if anticipated life expectancy is less than 15 years;
   and

3) The optimal collateral value of each policy to be funded by a
   LegacyLoan™ will now be independently determined by Legacy Funding's
   underwriting and actuarial teams, headed by former MassMutual Chief
   Actuary, John R. Skar, FSA, CLU, ChFC.

"By independently forecasting the anticipated maturity and future cost of each policy, we can deliver greater value to the policy owner than they would receive from selling their policy. It also allows us to maximize the yield we can pay to the institutional investors that fund LegacyLoans™," noted Larry E. Fondren, CLU, ChFC, FLMI, Legacy Funding's founder. He added, "Why would anyone sell their policy when they can keep it and get a better deal by using a LegacyLoan™ to pay all their future premiums, and repay themselves for premiums they paid in the past?"

LegacyLoans™ offer policy owners the best of both worlds: They retain their policies for heirs, estate planning purposes, charitable giving, etc. while harnessing its "equity" to spend or invest as they choose. In the January 2008 issue of The Insurance Forum, Professor Joseph M. Belth observed that, "LegacyLoan is in the public interest because it eliminates the insurable interest problems associated with secondary market transactions, and because it provides greater benefits to policyholders than secondary market transactions. The primary reason for the financial advantage of the program is its elimination of almost all the compensation paid to intermediaries in the secondary market."

By dramatically reducing costs, and operating in a fully transparent environment, the Investment Trusts that fund LegacyLoans™ offer investors very attractive, uncorrelated yields and a natural hedge against other mortality-linked investment risks.

For more information, or to speak directly to Larry Fondren or John Skar, please contact Jennifer Connelly at (973) 625-1130 or jenn@jcpublicrelations.com.

Contact Information

  • CONTACT:
    Jennifer Connelly
    JC Public Relations
    (973) 625-1130
    Email Contact