Life Settlements can be a valuable financial option for seniors who have a life insurance policy they no longer need or want. Seniors over the age of 65 with a life insurance policy may have had a change in circumstances that presents the important questions: What Is A Life Settlement, How Does A Life Settlement Work, and Who Qualifies For 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. LISA
The purchasers of life settlements, sometimes called life settlement companies or life settlement providers, generally are institutions that either hold the policies to maturity and collect the net death benefits or resell policies—or sell interests in multiple, bundled policies—to hedge funds or other investors. In exchange, you receive a lump sum payment.
The amount you will receive in the secondary market depends on a range of factors, including your age, health and the terms and conditions of your policy—but it is generally more than the policy’s cash surrender value and less than the net death benefit.
When you sell your life insurance policy, whoever buys it is acquiring a financial interest in your death. In addition to paying you a lump sum for your policy, the buyer agrees to pay any additional premiums that might be required to support the cost of the policy for as long as you live. In exchange, the buyer will receive the death benefit when you die. Finra
Some of the Best Life Settlement Companies in 2020 are:
Maple Life Financial
Magna Life Settlements
GWG Life Settlements
To learn more about the Best 10 Life Settlement Companies for 2020 please visit our article here
A life settlement broker is a person who, for compensation, represents, solicits, and negotiates, the sale of a life insurance policy. In most states, a person must be licensed to act as a life settlement broker and must take continuing education courses.
A life settlement broker, in exchange for a fee, will shop a policy to multiple life settlement providers, much as a real estate broker solicits multiple offers for one’s home. While it is the broker’s duty to collect bids, it is still incumbent on the advisor to help the client evaluate the offers against a number of criteria including offer price, stability of funding, privacy provisions, net yield after commissions, and more. Wiki
To learn more about Who Does A Life Settlement Broker Represent visit out article here
Life Policy Solutions, a licensed life settlement broker since 1999, can help guide you through all options for selling a life insurance policy as a life settlement. We have very successful relationships with all life settlement providers, including the 10 best life settlement companies. We can be reached at 844-440-7355, or www.cashoutlifeinsurance.com.
A life insurance policy is a form of property such as a car or a house.
Policy owners are free to sell and transfer ownership of their policies. Rather than continuing to pay premiums on a policy that no longer serves its original purpose, life settlements offer payoffs that can be significantly greater than surrendering a policy.
As Americans enter their senior years, they often experience unexpected changes that alter their priorities regarding life insurance. Policies that once made sense at the time of purchase often no longer make sense under new circumstances. Coventry Direct
Reasons a policy owner may need to sell a life insurance policy:
• Premiums are no longer affordable
• The need to replace lost income in case of death of the insured no longer exists
• A term policy may be reaching the end of the coverage period
• Funds are wanted to improve a retirement lifestyle
• The need for funds to pay estate taxes no longer applies
• The need to eliminate future premiums payments but keep some life insurance
• The need to eliminate future premiums payments but keep some life insurance
• There is a need for resources to pay for health expenses and long-term care
• A business no longer needs key-man insurance
• Premiums of policies owned by trusts continue to rise LISA
Candidates for life settlements are typically age 65+ or older and own a life insurance policy with a face amount in excess of $100,000.
A life settlement is only possible when the policy’s market value exceeds the cash surrender value. Key factors in determining the market value of a policy are the death benefit, the cost of future premiums, and the life expectancy of the insured.
Life expectancy is the key component in determining the market value of a life settlement transaction.
The lower the premiums and the shorter the life expectancy, the higher the selling price. This is because the greater the amount of premiums that need to be paid and the longer the investor must wait for the death benefit, the lower the policy value. LISA
Qualifications for a life settlement generally include:
• Insureds age 65 or older
• Insureds with a life expectancy of less than 12 years
• Insured may have one or more health impairments
• Policy type is Universal Life, Convertible Term Life, Whole Life and Second To Die are most common life settlements
It should be noted that a life settlement is not an option for every policy owner.
The first step to selling your life insurance is to determine if there is a value to your life insurance policy and find a qualified buyer. You can contact a life settlement provider directly, or you can contact a life settlement broker who, for a commission, can advise and guide you through the steps to sell your life insurance policy for cash.
A life settlement broker will help you navigate the buyers by promoting your policy to multiple buyers in the hopes of maximizing the value.
You will be asked to provide the following information:
• Copy of the life insurance policy
• Complete a life settlement application
• Medical History for the last 3-5 years including Doctor information
• Premium and ownership history
Once a buyer is in place, and a sale amount it agreed to by all parties, you will be asked to sign a sale contact giving ownership to the buyer in exchange for cash. Once ownership is transferred to the new owners you will receive a cash settlement and the buyer will pay on-going premiums and collect on the benefit when you die.
The life settlement process can take anywhere from 8 weeks to as much as 3 months.
It’s important for Policy Owners and Sellers to know:
• Policy market value is not always what you believe, or want it to be
• You will not get full death benefit
• Buyers do not want every policy
• Brokers charge a commission, always ask for commission fee
• You may have tax consequences
• You may be able to retain some death benefit
• A Life Settlement may not be your only option
• Don’t take the first offer
• Do your research
• Ask lots of questions
Who Does A Life Settlement Broker Represent
7 Reasons Why To Sell A Life Insurance Policy For Cash
Frequently Asked Questions about Life Settlements
Best 10 Life Settlement Companies
Qualify For A Life Settlement in 4 Steps
• Life Insurance Settlement Association https://www.lisa.org/
• Contact A Licensed and Qualified Life Settlement Broker to provide Guidance, Support, and Sales Assistance https://www.cashoutlifeinsurance.com/
• Visit or call your state’s Department Of Insurance
About Life Policy Solutions:
Life Policy Solutions was established in 1999 as a life settlement broker in California after recognizing the increasing needs of seniors looking to cash out their life insurance policy.
Life Policy Solutions developed highly successful strategies for presenting and ultimately selling life insurance policies as life and viatical settlements to the most trusted and well respected life settlement companies and providers.
Today, with close to $1 Billion in life settlement policy sales, and industry leading client payouts, Life Policy Solutions remains the gold standard when looking to surrender and cash out your life insurance policy for maximum cash offers.
Visit us at https://www.cashoutlifeinsurance.com/