Latest / The High Net Worth Podcast with Fexingo: Wealth Management, Tax Strategy, and Affluent Finance
How the Ultra-Wealthy Use Life Settlements for Liquidity
Lucas and Luna dive into life settlements—the secondary market for life insurance policies that lets wealthy policyholders sell their coverage for a cash payout. They walk through a real-world case: a 75-year-old real estate developer with a $5 million policy who needed liquidity for a new development and got $1.2 million from a settlement. They explain how it works, who qualifies, the tax implications (capital gains vs. ordinary income), and why high-net-worth individuals increasingly use this as an alternative to lapsing policies or taking loans. The episode also covers the risks—including…
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