WHAT IS A LIFE INSURANCE SETTLEMENT?
- A life insurance settlement is the sale of an existing life insurance policy on the secondary market to a third party for fair market value.
- The owner sells the policy in exchange for a lump sum settlement. This can be higher than cash surrender value.*
- The third party institutional investor becomes the owner of the policy. It makes premium payments, and collects the death benefit at the insured’s death.
- With institutional investors, policies are owned in large blind trusts with other policies. This can help to assure client confidentiality.
CHARACTERISTICS OF A POTENTIAL LIFE SETTLEMENT CANDIDATE
- Insured’s age is 65 and older
- Life expectancy of 15 years or less
- Decline in health from original policy issue
- Life insurance policies with a net death benefit of $250,000 or more (no maximum)
- Policy type Universal Life (UL), Survivorship Universal Life, Variable Universal Life and Convertible Term, (Sometimes Whole Life)
- Owner can be an Individual, Trust, or Corporation
- Premium should be 5% of Death Benefit (or less) and Cash Surrender Value should be 20% of death benefit (or less)
DO I QUALIFY?
A FEW REASONS WHY YOU MAY WANT TO SELL YOUR LIFE INSURANCE POLICY
- Insurance is no longer needed and you would like to sell the policy for a lump sum cash payment.
- Term policy is nearing the end of a term period. You can convert to a permanent product and receive, through a life settlement, proceeds for an asset that will terminate if not converted.
- Policies held within a trust are no longer meeting the original trust plan objectives.
- Business is sold or changes are made that result in insurance no longer being needed.
- Funds are required to focus on personal needs such as retirement, long-term care insurance, or family emergencies.
- Click here to read several Life Settlement success stories.
WATCH OUR VIDEOS
- Four illustrations where life settlements could be beneficial, and our two television commercials:
Contact Us to speak with a financial professional about Life Settlement Services.
*Actual offer will be dependent on your particular age and health status, the condition of your life insurance policy and other requirements of the secondary market at the time of your settlement.