Life settlements are not particularly complex, but you do need to understand how the process works. You have two options if you choose to sell your Life Insurance policy for cash. First, you can opt to sell directly to a provider. Second, you could choose to work with a life settlement broker instead.
Provider – A life settlement provider is the buyer, usually an institutional, qualified, licensed buyer with an interest in purchasing Life Insurance policies to take advantage of the death benefit.
Life Settlement Broker – A life settlement broker networks with multiple providers, but actually works diligently on your behalf to ensure the best possible deal for your policy.
Of the two ways to get started, working with a broker is the better option. Attempting to connect with providers on your own can be difficult, if not impossible. There is also the fact that you have no way to verify if the provider’s offer is fair, and entertaining more than one provider offer can be time-consuming and challenging.
Working with a broker ensures that those responsibilities are handled by an expert well-versed in life settlements and dedicated to ensuring that you get the most money possible for your Life Insurance policy.
Now, let’s address the sale itself. How much cash might you realize when selling a Life Insurance policy? That will vary due to a number of factors, including:
- Your age
- The death benefit amount
- Your current health
- Your life expectancy
In all cases, you will receive less for your policy than the actual death benefit specified, but you will receive more than the surrender value of the policy. This is because the provider (the buyer) is making an investment. The policy will continue to be in force, and when you pass on, the provider receives the death benefit (they are named the beneficiary of the policy).
Providers must make informed decisions to maximize their potential for profit. For instance, if you were to pass on before your estimated life expectancy, the policy would pay out more for them. If you were to live longer than expected, the policy would pay out less. In some instances, there may be additional costs to the purchaser that would impact the profit realized from the sale.
Is selling your Life Insurance policy right for you? In most cases, the answer is yes, but it is imperative that you work with a trusted life settlement broker. We invite you to contact us today to learn why Life-Settlement.com should be your trusted ally.