LIFE SETTLEMENTS

A life 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 that can be higher than the cash surrender value. The third-party institutional investor becomes the owner of the policy, 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.

REASONS WHY YOU MAY WANT TO SETTLE YOUR POLICY

Insurance is no longer needed and you would like to sell the policy for a lump sum cash payment. If a 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. If a business is sold or changes are made that result in insurance no longer being needed. If policies held within a trust are no longer meeting the original trust plan objectives. If funds are required to focus on personal needs such retirement, long-term care insurance, or family emergencies.