What is a life settlement?
A life settlement is the sale of a life insurance policy to a third party for a value in excess of the policy’s cash surrender value, but less than its face value, or death benefit. A policy owner receives a cash payment, while the purchaser of the policy assumes all future premium payments and receives the death benefit upon the death of the insured.
Candidates for life settlements are typically 65 or older and own a life insurance policy with a face amount in excess of $100,000.
Life settlements offer your clients a far better choice and options to changing needs than simply lapsing or surrendering an unwanted, unneeded or unaffordable life insurance policy. As seniors look to increase stability in their retirement portfolios, there is no question that advisors should consider all available assets that can be tapped in order to improve the quality of their clients’ lives.
Your clients will benefit in so many ways:
- They will preserve a high quality of living by receiving a higher cash payout than the cash surrender value.
- They will have relief from premium payments on an unneeded or unaffordable life insurance policy.
- They have peace of mind, relief, and dignity with additional funds to supplement retirement.
- They will have the freedom to redirect proceeds to generate income from other better-performing assets or even donate proceeds to charity.
- They will have to ability to fund long-term care.
- They will have more options and choices for selecting doctors, healthcare facilities or experimental healthcare procedures.
Submit your client’s case for an informal offer today! Click Here to download the informal application now!