New 2008 Valuation Basic Tables Cause Life-Expectancy Evaluation Changes

If you are an active life settlement producer or industry professional, you are probably aware that one of the top life-expectancy evaluating companies, 21st Services, has adjusted its methodology for calculating life expectancies based on the new 2008 Valuation Basic Tables (VBT) produced by the Society of Actuaries.

The recent adjustment from 21st Services has caused an immediate increase in life expectancies for all ages by as much as 20 to 25 percent. Although these types of adjustments do happen regularly in the life-settlement industry, this adjustment is greater than what is typically seen, so some providers have been forced to re-price pending offers.

This has caused quite a stir in the marketplace as many clients and producers have been impacted. However, Welcome Funds believes that in the long run, the adjustment will prove beneficial to the life settlement industry. 21st Services explains that its changes were not made lightly. The changes to the company's own mortality tables were made based on a detailed review of the 2008 VBT, with adjustments to accommodate 21st Services' markets.

Welcome Funds predicts that the ultimate result will be that providers and institutional investors will base their pricing on more accurate life expectancies, so their projected portfolio returns should be more predictable. And because investors will receive a more predicable return, the life settlement industry is poised for long-term growth.

In addition, not all providers use 21st Services as the primary driver for their life expectancy evaluations. There are four other primary life expectancy evaluating companies, which include AVS, FASANO, EMSI and ISC. Welcome Funds works with each of these companies to assure that the appropriate life expectancies are being used. Therefore, it's even more imperative for agents and producers to work closely with an experienced broker that knows the market well.

We'll be glad to answer your questions about the state of the life settlement market. Contact us today at 1-877-227-4484 or online at http://www.welcomefunds.com.