Magna Life Settlements #life #settlements #fund


Changing the Way You Think About Insurance

Magna Life Settlements, Inc. (“Magna”) is one of the largest Life Settlement providers in the industry. Between 2010 and 2014, Magna purchased over $1.7 billion in life insurance policies, resulting in over 500 policy owners receiving $290 million in total payout. We believe in consistently raising industry standards and supporting regulatory efforts in the market. Our strict compliance and anti-fraud programs continue to set Magna apart from competitors. Magna team members sit on the board of the Life Insurance Settlement Association (LISA), Institutional Longevity Markets Association (ILMA), and The International Secondary Markets for Life Insurance (BVZL). Our 18 employees have over a century of combined industry experience, including 4 law degrees, 3 MBAs, 4 Insurance Licenses, a CLU, and a ChFC.

Magna Life Settlements has been active in the life settlement industry since 2004 and was acquired by Vida Capital Inc. in 2010.

Maga Life Settlements is a proud member of the Life Insurance Settlement Association (LISA). LISA’s mission is to advance the highest standards of practice and professional development for the industry and educate consumers and advisors about a life settlement as an alternative to lapse or surrender of life insurance policies. President Dan Young is honored to sit on the prestigious Board of Directors of LISA.

Membership in the Association requires Magna to annually attest to abiding by a Code of Ethics and Standards of Professional Conduct, including all appropriate laws and regulations. Click here to learn more about LISA.

Vida Capital invests in longevity-contingent assets, which include, but are not limited to, life settlements. The company is one of the most active and respected investment managers in its space with over $1 billion of policy face value under management. With low correlation to other asset classes, life settlements have the potential to deliver appealing risk-adjusted returns. Vida Capital is headquartered in Austin, Texas and was founded in July 2009 by Jeff Serra and Austin Ventures. Vida has a professional staff of 35 with a senior team with over 100 years of collective experience in longevity assets.

In 2010, Magna was acquired by Vida Capital Inc, a leading asset manager in the longevity space. Magna has been active in the life settlement industry since 2004 and was the top ranked life settlement provider in 2013 and 2014 by capital deployed. Many of Vida’s competitors must contract out their sourcing and underwriting to third-party vendors. Vida’s integration with Magna provides the opportunity to participate in secondary market transactions and delivers confidence to Vida and its investors that each policy is thoroughly analyzed and vetted prior to its acquisition.

Member Firm Directory #nasp, #settlement #purchases, #settlement #transfers, #structured #settlements, #secondary #market

Member Firm Directory

3625 Broward Blvd, 2nd Floor
Fort Lauderdale, FL 33312

Annuity Transfers Ltd.
1800 Preston Park Blvd. Suite 115
Plano, TX 75093

BofI Federal Bank
4350 La Jolla Village Drive, Suite 140
San Diego, CA 92109

CBC Settlement Funding
181 Washington Street, suite 375
Conshohocken, PA 19428

Client First Settlement Funding
301 Yamato Road, Suite 3200
Boca Raton, FL 33496

DRB Capital
1625 South Congress, Suite 200
Delray Beach, FL 33445

Fairfield Funding
3424 Peachtree Road, Suite C 100
Atlanta, GA 30326

J. G. Wentworth
201 King of Prussia Rd, Suite 200
Wayne, PA 19087

Liberty Settlement Funding, LLC
16 NE 4th Street, Suite 210
Fort Lauderdale, FL 33301

Northeastern Capital
Empire State Building, 59th Floor
New York, NY 10118

Novation Capital
1641 Worthington Road, Suite 410
West Palm Beach, FL 33409

Peachtree Settlement Funding
201 King of Prussia Road, Suite 320
Radnor, PA 19087

Settlement Capital Corporation
14755 Preston Road, Suite 610
Dallas, TX 75254

Singer Asset Finance Company, L.L.C.
2255 Glades Road, Suite 118E
Boca Raton, FL 33431
(800) 670-6777

Stone Street Capital, LLC
7316 Wisconsin Avenue, Suite 500
Bethesda, MD 20814

Strategic Capital, LLC
100 Sheppard Ave East, Suite 720
Toronto, Ontario M2N6N5

NASP Annual Letter

Structured Settlements #structured #settlements #for #sale

Structured Settlements

Chances are your clients are dissatisfied with low-rate fixed annuities and dislike the fees and equity risk of variable annuities.

It s possible, however, to earn yields upwards of 6 percent on secondary market annuities issued by top-rated carriers such as Allstate, MassMutual, Prudential, AIG, John Hancock, MetLife, Berkshire Hathaway and New York Life. These annuities, also called structured settlements, are often promoted online and through print advertisements with call-outs like It s your money! and Don t wait to be paid!

These annuities usually originate as a guaranteed stream of income from a personal injury or medical malpractice lawsuit, or lottery winnings. Recipients that need cash up front sell the guaranteed income to a factoring company often through a court-ordered process. Yields may be 1 to 4 percent higher than annuities in the primary market due to the deep discount the buyer pays.

The price your client pays for the income from a structured settlement is net fees for expenses like due diligence reports. But also consider that the cut and commissions taken by secondary market sellers can run into the double digits.

Currently, one can buy a MetLife annuity with a 25-year term for a $232,000 investment that yields 6 percent. The return on the contract over 25 years is $1 million, according to a secondary-market annuity website.

Over a shorter term, a client could earn 4.5 percent from a 10-year Berkshire Hathaway annuity for a $33,000 investment with a return of $50,000.

Nathaniel Pulsifer, a Whitefish, Mont. insurance agent and director of marketing for Annuity Straight Talk LLC, a secondary market annuity wholesaler, says that recipients of structured settlements often can t cash out an annuity directly through the insurance company, so they must sell it through a factoring company. J.G. Wentworth is the big kahuna in the secondary insurance market. Others include Somerset Wealth Strategies, Altium Group, Pacific Structured Assets, and Peachtree Financial.

Buying or selling an annuity on the secondary market is not easy. Stan Haithcock, an annuity consultant, says there may be about $1 billion worth of annuities for sale on the secondary market, but hedge funds, private equity and institutional investors swoop in and buy 80 percent of them.

It is a first-come-first-serve market, he says. So if you see something you like, you better move on it. Individual investors, he warns, get a haircut on the price.

Haithcock says that financial advisors need to refer clients to brokers who specialize in secondary market annuities. CPAs and lawyers need to review the tax and legal ramifications of the transactions.

It s kind of messy, he says, noting the market is largely unregulated. Most (insurance) agents are not qualified to sell them. Selling your annuity is not like selling your car.

You need to receive a judge s approval to change the payment rights of the policy. The issuing insurance company needs to acknowledge and approve the change a process that can take a while, he says.

If handled incorrectly, he warns, an advisor involved in the transaction could face a lawsuit.

Kristine McKinley, a financial advisor, says she would not normally recommend any type of annuity to risk-averse clients. She would review all suitable options, based on safety, liquidity and yield.

With interest rates most likely to increase, it doesn t make sense to lock into anything, especially for 15 years, she says.

Another caveat: The buyer is depending on the validity of the court order approving the sale of the annuity. The court approving the transaction must have jurisdiction over the assignment of the annuity and the parties involved in the transaction, including the insurance company or the state lottery commission, according to a report by Pacific Structured Assets.

Only a handful of companies truly compete in this space, so the inventory of secondary market annuities is limited, Haithcock says. With billions of annuities sold every year and trillions already on the books, secondary market annuity offerings will grow. But the market for these investments is for sophisticated investors.