MINNEAPOLIS, June 28, 2016 (GLOBE NEWSWIRE) -- GWG Holdings, Inc. (GWG) (Nasdaq:GWGH), a specialty finance company and a leading purchaser in the life insurance secondary market, today announced it has paid seniors more than $336 million in the past decade for their unneeded, unwanted, and unaffordable life insurance policies. This amount represents $313 million above the cash surrender value of $23 million that the insurance carriers would have paid.
“Since 2006, GWG has paid seniors and their families over 10 times more than the insurance companies would have compensated them for those very same policies if they had simply lapsed or surrendered them,” said GWG President Michael Freedman. “Hands down, a life settlement is a game-changer for seniors and their families. Most often, the proceeds of a life settlement are used to reinvest in retirement or address the challenges of paying health care costs – and they can improve the quality of life for seniors and their families.”
The amount paid to seniors by GWG is in line with several studies on the life insurance secondary market showing that seniors received four to 11 times more from life settlement transactions than they would have received from their insurers. As a result of such positive returns for seniors, many financial advisors, insurance agents, and elder care advocates – as well as several states – are now promoting life settlements as an alternative to terminating a policy, including as a way to pay for long-term care.
Value of the Life Insurance Secondary Market
In addition, GWG announced it has purchased a total of more than $2 billion in face amount of life insurance since its founding in 2006 – another milestone as the company marks its 10-year anniversary. As reported in the first quarter of 2016, GWG’s current portfolio of life insurance has exceeded $1 billion in face value of policy benefits.
“In addition to providing seniors with a market value return for the sale of their life insurance policies, there is significant value for investors who want to diversify their portfolios with high-yield alternative investments generated by the life insurance secondary market,” said Freedman. “As the national and world economies continue to prove to be tumultuous and volatile, financial advisors can look to investments in these non-correlated assets to find stability and yield for their clients.”
About GWG Holdings, Inc.
GWG Holdings, Inc. (GWG) (Nasdaq:GWGH) is a specialty finance company and a leading purchaser in the life insurance secondary market. GWG is dedicated to creating a vibrant life insurance secondary market for the economic benefit of seniors seeking post-retirement financial solutions, investors seeking yield derived from non-correlated assets, financial advisors seeking value-added products and services for their clients, and shareholders seeking to benefit from the growth of this marketplace. As of March 31, 2016, GWG’s growing portfolio consisted of over $1.0 billion in face value of benefits. Since 2006, GWG has purchased nearly $2 billion in life insurance policy benefits and paid seniors over $335 million for their policies.
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Source:GWG Holdings, Inc.