Life Settlements
Through a life settlement, we can provide our clients with an influx of cash now in exchange for a death benefit payout at some unknown future date. In essence, a life settlement is the sale of a life insurance policy to a qualified institutional buyer. The policy owner receives cash today and the investor takes over the premium obligation in exchange for the future death benefit proceeds.
We have helped many families receive significant value for life insurance policies that they no longer needed or wanted. The marketability of a policy is dependent on several factors, which are greatly influenced by the age and health of the insured. Generally, a life settlement works best for older insureds that have experienced a decline in health since the policy was acquired.
Life Settlements give policy owners a choice and flexibility when a policy is no longer needed or too costly to maintain. Previously, the only available options were to lapse, cancel or surrender a policy back to the life insurance carrier for minimal cash value. Now, like most assets, life insurance policies can be sold to a willing buyer for a fair price.
The price paid for the policy represents the net present value of the policy, which is discounted from the face amount, and calculated by considering the future premium expenses, health prognosis of the insured, as well as other risk factors. Professional buyers are licensed as life settlement providers across the U.S. and are authorized to purchase policies from life insurance policy owners.