MINNEAPOLIS, Aug. 25, 2016 (GLOBE NEWSWIRE) -- GWG Holdings, Inc. (Nasdaq:GWGH), a specialty finance company in the life insurance secondary market, is commemorating Life Insurance Awareness Month this September. The Company will participate in a series of events and activities to promote awareness about the life insurance secondary market to consumers as well as their insurance and financial advisors.
The life insurance secondary market continues to grow and public awareness is also on the rise. The expansion of the market means more seniors are finding out about their right as policyholders to obtain a market value for the life insurance policies they no longer want, need or can afford. Baby Boomers – and their adult children and others – are finding hidden value through the sale of their life insurance policies and using the proceeds to meet their post-retirement financial needs. Seniors are also using the funds to cover their health care and long-term care needs.
Increasingly, financial professionals – including financial advisors, insurance agents, CPA’s and others – are also looking to the life insurance secondary market as a way to help achieve their clients’ retirement objectives, generate resources for reinvestment, or simply to provide for their loved ones while they are still alive.
“GWG is changing the way people think about life insurance. We are actively working to ensure consumers, advisors, and investors understand that life insurance policies are an asset – and that they can be sold for fair market value,” said GWG President Michael Freedman. “GWG pays seniors between 4 – 11 times more than the insurance companies would pay if the person were to surrender the policy back to the insurance company.”
As part of Life Insurance Awareness Month, GWG will be promoting consumer and advisor awareness. In advance of September, the company is sharing with the public some key information and statistics related to the life insurance secondary market, including:
- The US Supreme Court established more than 100 years ago that owners of life insurance have a property right to sell their policies as an alternative to surrendering or lapsing the policies back to the insurance company. In establishing a property right in life insurance for consumers, the Supreme Court said that life insurance policies would be worth less if they could not be sold in an open and competitive market.
- Seniors who sell their policies receive, on average, between 4-11 times more than the cash surrender value for their policies, according to reports from both the US Government Accountability Office (2010) and the London Business School (2013).
- It is estimated that more than $180 billion in life insurance policies owned by seniors could be sold in the life insurance secondary market, if the seniors were aware of their right to sell a policy.
- Selling a policy is a very safe and secure transaction for seniors. Today, more than 90 percent of Americans live in the 42 states with modern regulations that govern the life insurance secondary market. There has been only one reported consumer complaint filed with state insurance regulators in the entire US over the past four years, according to the National Association of Insurance Commissioners.
Throughout September, GWG plans to continue to promote the life insurance secondary market to seniors and financial advisors. This will include informational seminars, promotions, and participation in industry activities. Stay tuned for more during Life Insurance Awareness Month.
Click here to learn more about GWG and how seniors are tapping into the financial value of their life insurance policies.
About GWG Holdings, Inc.
GWG Holdings, Inc. (GWG) (Nasdaq:GWGH) is a specialty finance company 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.