Life Insurance Settlements
During life settlements, a policy owner with a limited life expectancy, normally 10 years or less, sells their policy in order to extract the maximum value for use in whatever financial needs they may have. Until recently, the owner of an unneeded or unwanted policy only had two options. They could either sell the policy back to the institution that issued it for its cash surrender value, or allow the policy to lapse. Thanks to companies that specialize in life insurance settlements, your client’s policy will be resubmitted through the secondary market. Each new offer generated through this process results in more money for your client, thereby providing a greater financial portfolio for you to manage as their trusted financial advisor or agent.
They can broker an existing policy for an amount greater than the policy’s cash surrender value, or greater than the amount the policy owner would receive if they choose to allow the policy to lapse. In many cases, the policy being considered for sale is not performing to the expectations of the policy holder. Or perhaps, the original need for the policy has changed, and the premiums to keep it current have become a financial burden. Whatever the reason, if senior settlements are right for you, there are great resources online to help you take advantage of this opportunity.