Clients often ask us the question: “What is a life settlement.” We thought we would answer the question below.
A life settlement is a cash settlement obtained through the sale of your existing life insurance policy. A life insurance settlement involves selling an existing life insurance policy to a third party company outside of the insurance company that previously issued the policy. In the past, individuals would have has to surrender their policies or wait for them to lapse in order to get out of their life insurance policies.
With Life Settlements, individuals can now attain the maximum value of a policy owner’s existing life insurance policy and repurpose those funds for whatever financial needs they may have. By utilizing the services of Life Insurance Settlement Inc. your life insurance policy, or the policy of your client will be submitted through the secondary market.
Buyers will pay the insurance premiums until the final benefit is collected. In exchange, the policyholder is unburdened from having to pay monthly premiums and receives an upfront cash value greater than the cash surrender value their life insurance company could have provided. Selling a life insurance policy is just like selling any other piece of property; the asset can be leveraged to give the policyholder an immediate cash return.
Each new offer generated through this process results in more money for your client, thereby providing a greater financial portfolio for the broker to manage as the policyholder’s trusted financial advisor or agent.
Life Insurance Settlement Inc. will broker an existing policy for an amount greater than the policy’s cash surrender value, or greater than the amount the policy owner would receive if they choose to allow the policy to lapse. In most cases, the policy being considered for sale is not performing to the expectations of the policyholder. Sometimes, the original need for the policy has changed, and the premiums to keep it current have become a financial burden.
Contact us at 1-866-326-5433 24/7 to speak to a life settlement expert that can help you.