Senior Settlements
Life settlements is a term that describes the sale of an existing life insurance policy for less than the death benefit, and more than the cash surrender value. It can be an ideal option for those whose insurance premiums have become too expensive to continue. It should also be considered when re-evaluating your estate planning, should there be a change in your health condition, when the policy is approaching a lapse, and when purchasing additional insurance coverage such as long term care coverage.
When properly employed, senior settlements can offer an opportunity for your client to benefit from no longer wanted or needed insurance coverage. The majority of secondary market transactions result in the sale of another financial product or service with the capital generated by the sale of the original policy. Case studies have shown that this capital may be used to broker a new and better performing insurance product proven more suitable for your senior client’s current needs.
Not everyone should sell their life insurance policy. It is important however that people evaluate their situation with life settlement providers as part of their wealth management strategy. For those who no longer want to maintain coverage, or for whom premiums have become burdensome, a life settlement may be your ticket out.