Ben Mohr, LLC Gets You the Best Value

There have been significant laws and benefits to policyholders indicated to help support and make the selling of life settlements more favorable for sellers. Ben Mohr of California and his team know the legalities and take the time to walk you through the benefits of selling your policy.

The word ‘taxes’ has never been viewed as a favorable word, however, a law enacted known as Tax Cuts and Jobs Act (TCJA) has made this word less threatening in the Life Settlement process. TCJA nearly doubled their estate tax exemption - this alone made it more favorable for sellers. The second provision changed how life settlements alone were taxed.

TCJA has tipped the scales of the life settlement in regards to taxation when the IRS stepped in to tax the popular form of liquidation. Ben Mohr of California weighed in, “With an aging population looking at outliving their savings - this is a scary thought. By having additional benefits to make selling favorable for the policyholder, this has elevated some of the stress these policies sometimes bare.”

The amount of transactions in regards to life settlement policies has nearly tripled over the last year. The value of life insurance policies has also increased - this trend seems to continue. This trend is showing a promising and healthy landscape for the Life Settlement market.

Stocks have had a direct impact on the retirement funds of many seniors. “The option to make withdrawals from retirement funds in a down market is not something that will work in your favor in the long run,” says Ben Mohr, of California. “For seniors over the age of 65 who qualify - a life settlement can be a way of obtaining immediate cash funds instead of withdrawing from their retirement which they could be penalized for.

The option to sell your life insurance policy has always been a secondary market outside of retirement funds and is currently seeing a resurgence as additional capital enters the market.