Life Partners, Inc.
| Industry | Life settlement provider |
|---|---|
| Headquarters | Waco, Texas, United States |
| Parent | Life Partners Holdings, Inc. |
| Website | www |
Life Partners, Inc. is a life settlement provider headquartered in Waco, Texas. LPI's parent company, Life Partners Holdings, Inc. delisted from the NASDAQ and currently trade on the OTCPK under the ticker LPHI.Q. This follows the company seeking Chapter 11 bankruptcy protection, resulting from a total of $46.9 million in penalties levied against the company and two officers.
Life Partners Inc. is the world’s oldest life settlement provider and one of the most active companies in the world engaged in the secondary market for life insurance. Life Partners Inc. is the architect of the newest asset class, life settlements; which has grown over the past decade to become an $80 billion industry. By selling the policy, the policyholder receives an immediate cash payment to use as he or she wishes.
It filed for Chapter 11 bankruptcy protection on January 19, 2015.
Since its incorporation in 1991, Life Partners Inc. has completed over 150,000 transactions and generated a total business volume of over $3.2 billion in face value of policies for its worldwide client base of over 29,000 high-net-worth individuals and institutions in connection with the purchase of over 6,500 policies. Life Partners Inc. utilizes Advance Trust & Life Escrow Services, LTA for its life settlement transactions. ATLES is supervised and regulated by the Texas Department of Banking and is responsible for the custody and dispersion of LPI client funds.
Through life settlements, the secondary market for life insurance provides more options for policy owners to pursue when they no longer want or need their current life insurance policy. Many seniors paying premiums on life insurance policies cannot afford to continue. Premiums have skyrocketed and the need for the policy has diminished. More than 85% will simply let their policies lapse. Most likely, they are unaware they can sell these policies for four to ten times the cash value in the secondary market. If seniors give the proceeds from their life insurance policy sale to charity, they may reap substantial tax benefits.
In January 2012, the SEC filed a civil action against Life Partners Holdings and three of its senior executives for an alleged fraudulent disclosure and accounting scheme involving life settlements. The SEC alleged that Life Partners’ chairman and CEO, the president and general counsel, and the chief financial officer misled shareholders by failing to disclose a significant risk to Life Partners’ business: the company was systematically and materially underestimating the life expectancy estimates it used to price transactions.
...
Wikipedia