SOURCE: AAA Settlements

September 05, 2007 10:04 ET

Recent Sub Prime Credit Crunch Could Increase the "Senior Life Settlements" Market to Record Highs in the Upcoming Year

NEW YORK, NY--(Marketwire - September 5, 2007) - While the recent sub prime credit problems have had an adverse effect on the mortgage and real estate market, diminished values in asset backed portfolios, it probably will accelerate the growth of the emerging "life settlements" market.

When senior homeowners are falling behind with their mortgage payments, they can sell their life insurance policy for a cash lump sum and keep their house out of foreclosure.

"We have seen an uptick within the last month of policy owners who say they will not be able to afford future premiums on their life insurance policy because of the recent liquidity and credit problems in the real estate market," says Al Weinberger from AAA settlements.

One crucial piece of advice he adds, in case you realize you will not be able to afford to make future premium payments, don't wait for the last minute, contact your agent immediately to discuss the life settlements option. Waiting when your policy premium is already overdue can force the policy owner to accept the cash surrender value from the life insurance company; in some cases the surrender value is only 5-10 percent of the policy's market value. In general it is suggested you look ahead 4-6 months.

At the same time institutional capital from US, Europe and Asia continues to be the dominating force of the "buyers" of the life settlements market.

Unfortunately there is no secondary market for life insurance policies on younger people. So if you are younger than 70 and want to get rid of your policy there is little or no cash you can get.

Weinberger, who is co founder of AAA settlements, says he expects 2008 to be a record year for his company and for the settlement industry. "We estimate that the settlements market will continue to expend and reach 20-25 Billion in face amount in 2008," he says.

About AAA Settlements

AAA Settlements is an emerging Life Settlements Broker Company that works with financial professionals and life insurance agents, AAA settlements is a member of the life insurance settlements association. For more information you can visit

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    Al Weinberger
    AAA Settlements