What is a Life Settlement?
A life settlement offers policyowners the opportunity to
sell their policy for significantly more than the cash value
offered by the insurance carrier. The purchaser assumes ongoing premium payments and
receives the death benefit upon the death of the insured.A life settlement is the sale of an existing life
insurance policy for more than the policy’s cash value but
less than the death benefit.
A surrender essentially is a sale of the policy back to the
insurance company for the cash value. Life settlements
benefit policyowners by offering an alternative to the
“take it or leave it” price that insurance companies will
pay them if they cannot or will not keep their policies in
force.
On average, life settlements provide more than four times
the policy’s cash surrender value in addition to decreased
monthly expenditures for policy premiums.
Why would I sell my life insurance policy?
- Estate, business, or financial needs have changed
- Liquidity is needed
- Premium payments have become unaffordable
- The original purpose for the policy no longer exists
Who Qualifies?
- Age 65 or over
- Death benefit of $100,000 or more (Term or Whole Life)
- Any policy type with a death benefit of $100k or
- greater and issued by a U.S. carrier may qualify.
- Younger insured with health impairments or terminal conditions may also qualify
How can I use the proceeds?
- Medical or long term care costs
- Provide immediate financial support for your family
- Vacation
- Car
- Investments
- Fund a better retirement
- There are no restrictions