SOURCE: Legacy Funding Group, Inc.

September 16, 2008 09:48 ET

New Life Insurance Policy Compensates Families, Pension Funds, Care-Providers and Others Suffering Longevity-Related Losses

MALVERN, PA--(Marketwire - September 16, 2008) - Legacy Funding Group, Inc. today unveiled its patent-pending "Deferred-Benefit Life" ("DBL") Policy, which will be offered by well-rated life insurers. Unlike traditional life insurance policies, which primarily compensate beneficiaries suffering financial losses due to the pre-mature death of an insured, DBL policies compensate beneficiaries financially suffering due to the post-mature death of a senior insured that has lived significantly beyond their normal life expectancy.

As we are living longer than ever before, many of us will outlive our retirement funds and other financial resources, incur substantial medical costs, and require extensive long-term care. As a result we may deplete our estate, and significantly strain the assets of our pension fund, family members, care-providers and others. DBL policies are designed to restore and enhance those depleted assets upon the eventual death of the insured, through its payment of a death benefit that increases annually.

Here's how they work:

1) All insureds age 65 and older are eligible for coverage, regardless of their current medical condition;

2) Policy owners pay level monthly, quarterly or annual premiums until the insured reaches age 100 or passes away;

3) To minimize the required premiums, DBL Policies develop no cash or surrender value, and pay no death benefit during the initial "Benefit-Deferral Period" selected by the policy owner (ranging from 3 to 20 years in duration); and

4) Following the Benefit-Deferral Period, the policy's death benefit increases each year per the schedule specified by the policy owner in their DBL application.

Legacy Funding's Managing Director and Chief Actuary, John R. Skar, FSA, CLU, ChFC, noted that, "by providing a death benefit that increases as the insured ages, DBL Policies effectively protect not only investors funding our LegacyLoan™ product, but also families, pension funds, care-providers and other benefactors holding a risk of material longevity-related loss. In particular, the product offers an interesting alternative to long term care insurance, as an estate preservation tool."

Legacy's founder, Larry E. Fondren, CLU, ChFC, FLMI also added that, "in many cases, a DBL Policy can provide greater and more cost-effective benefits to seniors, and their family and estate, than a retirement annuity and other less tax-efficient solutions."

For more information, or to speak directly to John Skar or Larry Fondren, please contact Melinda Staab at (973) 400-1341 or

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