THE SITUATION Emily Graham1 and her husband Charles (now deceased) purchased a $4 million universal life insurance policy in 1995 for estate planning … Read More about Life Settlement Success Story: Increased Cost of Insurance
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)
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
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.
Tell Us About Your Policy:This form will help you determine whether you, or your client, might be eligible for a life settlement. This is meant to be used as a screening tool only. Insureds whose point total indicates probable acceptance may, in fact, not qualify based on a more in-depth review. All applicants must submit an inquiry, be underwritten, and have their policies and other data analyzed before final acceptance or rejection can be determined. By completing this form, please note that all insureds/policies must meet the following parameters: Minimum age: 65, minimum face amount: $250,000, insurance company rating: “B+” or better by AM Best (or other agency). To proceed, please complete the following form. Then click submit to send this information to our qualified representatives for review.
News & Case Studies
LONG TERM CARE LIFE SETTLEMENT CASE STUDY THE SITUATION Maria Smith1 is a 91-year-old widow who is extremely concerned about the high … Read More about Life Settlement Success Story: Long Term Care Funding
Life Settlement Case Study 5 THE SITUATION James Green*, a 67-year-old business owner, was diagnosed with colon cancer. His business … Read More about Life Settlement Success Story: Personal Needs
Life Settlement Case Study 4 THE SITUATION Mark Jones*, a 63-year-old corporate executive, was diagnosed with cancer. Fortunately, he … Read More about Life Settlement Success Story: Family Emergency
Life Settlement Case Study 3 THE SITUATION Ted Bailey*, a 59-year-old entrepreneur, had fallen on hard times during the economic crisis. … Read More about Life Settlement Success Story: Business Changes
Sales of life insurance policies in life settlements can be very advantageous where a policy owner no longer needs or wants the policy or is … Read More about Life Settlements Guide
Why Life Settlement?
- Policy Conversion
Your term policy is nearing termination Watch Case Study Video
- Business Changes
Your company has changed or been sold Watch Case Study Video
- Trust Objectives
A policy within a trust no longer meets it's objectives Watch Case Study Video
- Personal Needs
Funds for retirement, long-term care or a family emergency Watch Case Study Video