The Life Insurance Settlement Association (LISA) has been making efforts to increase awareness about life settlements and the benefits they have for seniors. While it has been reasonably successful, topping out at $3.4 million in 2018 and expected to continue growing, there is still little knowledge about how it works and who qualifies amongst seniors.

Most people are under the impression that life settlements are for those who have deteriorating health and severe health conditions; however, healthy candidates now qualify. That’s right; your life expectancy does not have to be depleting to receive the cash you need out of your life insurance policy.

Can I Sell My Life Insurance Policy?

Life settlements have been known to benefit seniors who need to cover impending medical costs and rising health care. It is true; life settlements are an excellent source for those that need additional cash flow in retirement.

Typically qualifications are based on an in-depth medical history check. Value is determined by the policy owner’s decline in health from the start of the policy and whether they have a detrimental health condition.

This is no longer the case. Healthy seniors can qualify for a life settlement, too, meaning that no health impairments are necessary. In fact, a comprehensive medical report is not required if you meet the following stipulations:

  • You have a guaranteed universal life insurance policy
  • Your policy’s death benefit is $250,000 or more
  • You are 75 years of age or older

Sell Your Life Insurance Policy for Quick Cash

Healthy seniors that meet these qualifications can also get their life settlement quicker than the typical qualified candidate. Offers are made within 24 hours, and the cash is received within weeks. It is an easier process in comparison to the traditional life settlement process, which takes months, given the extensive collection of medical records and thorough review.

Guaranteed universal life insurance (GUL) policy owners now have more opportunity than ever before. There are many reasons to consider a life settlement, even if you do not need the cash for deteriorating health—one reason- those pesky premiums.

Life insurance premiums can get expensive, and many seniors find them unnecessary, especially after the phase of their life has passed where having life insurance is a priority. Have your kids grown up and had families of their own with their own life insurance plans? Considering your assets in retirement is crucial.

Why Consider a Life Settlement?

Opting for a life settlement yields more value than surrendering a policy by at least 4%. Lapsing should not be an option when you can get cash out of your policy. Don’t pay those premiums unless you have to.

Another reason to consider a life settlement as a healthy senior is for the concern of a loved one that may not be as healthy as you. Perhaps your spouse has a medical condition that has caused medical expenses to exceed your available funds? Or maybe you have to cover long-term care costs for a loved one in a nursing home? These are real-life situations, but a life settlement can help, especially when impending costs come as a surprise.

An additional scenario that may cause a life settlement in retirement is no longer having to worry about costs that you initially took out a guaranteed universal life insurance policy for—for example, estate taxes. The average cost of death for an American is nearly $12,000. Including the transfer of all your assets and more excessive estate taxes among other charges.

Cash Value of a Life Insurance Policy

Some guaranteed universal policy owners intend to use their death benefits to cover costs and protect their descendants’ estate because they were tax-free. Consequently, new estate tax laws have passed that protect estates from such large expenses.

The tax law passed in 2017 reduced the liability of many American’s asset exposures to these costs. If you no longer have the concern of impending estate taxes, you may not need the policy anymore, making it a great time to sell your GUL policy for cash value that can go to better use during your lifetime!

There is no better time for seniors to sell their guaranteed universal life insurance policy. While being prepared for the costs that come with aging is important, living out your life to the fullest extent is now a more viable option. People are living longer, and having the funds to fuel your retirement is necessary. If you are healthy and no longer need your life insurance policy, call ​LIS today to see if you qualify for a life settlement.

Rob HaynieDecember 28, 2020

Rob Haynie

Mr. Haynie has been a major influence on the evolution of the life settlement industry during his almost twenty-seven year career of proactive involvement. Not only has he been directly involved in negotiating and settling several thousand contracts, he also presently serves on the board of directors of the Life Insurance Settlement Association (LISA) and is a charter member of the Association’s PPC committee, which is charged with the regulatory and legislative activities of the industry. Additionally, he has served on both the Customer Advisory Board (CAB) of ITM/TwentyFirst Services and the Advisory Board of the Insurance Studies Institute (ISI). He was named one of the top 10 most influential people in the life settlement industry worldwide. Mr. Haynie, an Alumnus of Florida State University, currently holds a Life Agent License with Viatical Settlement Broker Appointment for LIS and has spoken at almost every life settlement industry meeting or conference, published articles on the subject and has given many educational webinars as well.

Add Comment