Whether you no longer want your life insurance policy or feel it is no longer necessary, you can benefit greatly from selling your policy with a life settlement. Rather than letting it lapse, cancelling or surrendering your policy, you can sell your it to a qualified third party for more than its surrendered value, but less than its face value or death benefit.
Sadly, an astounding number of life insurance policies owned by seniors over the age of 65 are lapsed. This is a very unfortunate situation because these policyholders are forfeiting the potential financial benefits from their policies by letting them lapse back to the carriers.
By allowing your policy to lapse, you are essentially taking what could be hundreds of thousands of dollars in your own pocket, and handing it over to your insurance company.
So why does this keep happening? Most policies lapse because there is a lack of awareness about the life settlement process.
Many seniors are not familiar with the option of selling their life insurance policy and do not know that a life settlement is an option. Life settlements allow you to extract cash from your policy and use it for whatever you like, with no strings attached. Proceeds can be used to supplement your retirement, pay down debts, fund long term care, and a variety of other purposes.
Before you leap into the process of selling your life insurance policy, there are a few key things to understand. We’ll run through the most important terms, topics, concepts and caveats below.
- Life Settlement: Life settlement is the term given to the process of selling your life insurance policy. While the total benefit of your policy is will not be paid for, there will be an agreed upon settlement price between the policy holder (the seller) and the buyer.
- Life Settlement Broker: A life settlement broker works with policyholders (you) to find the best settlement value. The broker represents the seller in the life settlement marketplace and helps connect them with qualified life insurance policy buyers.
- Qualified Buyer: A qualified buyer, also called a provider, is an institutional purchaser licensed to purchase life insurance policies from policyholders. Qualified buyers will make an offer on a policy that falls between the cash surrender value and the death benefit value of the policy.
- Tax Consequences: There may be tax consequences when selling life insurance policies. Every situation is unique, and it is highly recommended that you speak with a financial/tax advisor to understand the impact of such a sale on your tax liability and financial standing. Note that the death benefit of the policy is tax-free to your beneficiaries, though.
- Personal Information Sharing: In order to connect you with qualified buyers, a life settlement broker will need to share personally identifiable information with buyers. This information can include geographic, health/medical, and financial information. It is important to work with a broker you can trust that respects your privacy and ensures the security of your personally identifiable information.
Not sure how to proceed? Unsure what your policy is worth, or how to solicit offers from qualified buyers? We can help.
At Life-Settlement.com, we have built the largest network of qualified providers in the market and we specialize in getting you free offers from qualified buyers quickly and hassle-free. We’re committed to protecting your information and ensuring you are well taken care of throughout the life settlement process
Ready to move forward? Get in touch with us today, or request a free life settlement quote.