67% of small business owners plan to retire within the next 10 years
Orlando, FL, Sept. 15, 2014 – Asset Life Settlements, LLC today announced the company expects an increase in the supply of corporate owned life insurance (COLI) policies brokered in the secondary market due to business owners seeking to cash out and retire.
“The improving economy and financial performance of small businesses is the driving force behind the recent spike in the sale of small businesses by aging owners,” said Scott Thomas, co-founder of the company. “Economists estimate that 70% of the 12 million privately owned businesses in the U.S. will change hands as baby boomers retire in the next decade. Some of those retiring business owners who carry key person life insurance may qualify for a life settlement to boost their retirement nest egg.”
Company co-founder Jeff Hallman cited discussions with agents and recent market studies to support the company’s optimistic outlook. According to BizBuySell.com, small business sales in 2013 were up by 42% from the previous year. Data released in May 2014 by Pepperdine University found that 65% of the businesses sold in Q1 2014 were by baby boomers, and a 2013 Pepperdine survey found that 67% of business owners expect to retire within the next 10 years.
“It makes sense that aging business owners who survived the recent economic downturn are motivated to cash out now,” said Hallman. “Insurance advisors should remind retiring business owners and business brokers not to overlook the possible hidden asset value of key person life insurance.”
Hallman and Thomas noted that the recent upturn in mergers and acquisitions and the projected sale of businesses present new opportunities for insurance advisors as it relates to the disposition of corporate owned life insurance. Agents are encouraged to partner with the brokerage team at Asset Life Settlements to pre-qualify and shop each policy in the secondary market for the highest offer.
About Asset Life Settlements, LLC
Located in Orlando, FL, Asset Life Settlements is a member of the Life Insurance Settlement Association (LISA), the industry’s largest trade organization. The experienced professionals at Asset Life Settlements are committed to assisting each policyholder in optimizing the value of their life insurance asset and have a proven track record in delivering results. Learn more at www.assetlifesettlements.com, or call 1-888-335-4769.
Jeff Hallman 888-335-4769 ext. 1
Scott Thomas 888-335-4769 ext. 2