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Wisconsin could become latest state to strengthen life settlement regulations 2010-03-10 Life settlements are a viable way for older people to raise cash in retirement, and the instruments are only becoming safer in many states. To wit, Wisconsin's senate passed a bill at the end of February that strengthened the state's existing life settlement rules. The move parroted those of other states like New Jersey and Pennsylvania, which announced late last year that their rules governing life settlements would be made stricter in a bid to protect consumers. Now the proposal moves to the insurance committee in the state assembly; the committee should vote on the bill soon, Eileen Mallow, assistant deputy for the Wisconsin insurance commissioner, said to National Underwriter magazine. There are exceptions to the new rules. Policyholders with unexpected medical costs or those who filed for divorce would be able to sell their policies after just two years. Life settlements can be a valuable source of income for cash-strapped retirees who have no use for their life insurance policy - but older people thinking about a settlement should research them carefully. And regulations differ by state, so settlement shoppers may want to study the rules where they live.  |
