The life insurance industry sits on stilts as the pandemic forces people into financial insecurity. People with tight budgets are turning to their expenses and eliminating what they can. This leaves their insurance policy on the questionable list of necessity. 

The COVID impacts are significant to insurance agents, as they rely on residuals from these policyholders. If clients decide to get rid of their policy, they suffer the consequences too. How can agents avoid this? Now is the time to focus on the relationship with clients more than ever. 

That means reaching out to your policyholders and giving them options. Clients should trust you as their life settlement broker and seek your guidance. Maintaining that relationship and helping them is beneficial to both parties. So, what can you suggest?

Appraisals for Insurance Agents and Their Clients

During these unprecedented times, an appraisal is an answer. If a client is considering dropping their policy, suggesting an appraisal on their policy will give them more options and help you save the relationship you have with them. 

As the pandemic wears on, many individuals are experiencing tough times with financial challenges. Clients might be thinking whether or not they can continue to pay the premium payments. Although it is important that a client understands first that they have options before dropping their policy outright. 

The life settlement industry is giving seniors options. Life insurance policy holders may have the option to change their premium payment schedule or utilize their insurance policy’s grace period if they have a short-term issue. Or the life settlement market may be a good fit. 

Turn a Financial Burden into Financial Relief

Even if an individual still can’t afford their premiums, the most important thing is to make sure the policy does not lapse. Senior clients may be sitting on a sizable life insurance settlement if their policy is worth more than the cash surrender value. 

Unfortunately, most people do not know that there is a secondary market for life insurance policies. For seniors needing financial relief, there is a very good chance that someone will pay for their policy.

It all starts with an appraisal and an understanding of the options. An appraisal allows both parties to know the policy’s true value and opens up opportunities for the client to compare or sell. 

The policy is likely worth more than the cash surrender value and much more rewarding than if it were to lapse. Suppose the client wants to keep their coverage. In that case, they can be moved to a different policy that better suits their needs, but if they no longer need the policy, it is also an opportunity to suggest a life settlement based on their appraisal.

Why a Life Insurance Settlement Now?

Insurance companies are being forced to change the way they operate with concerns about COVID-19. Some companies are even offering new policies without the need for a medical exam. A life insurance appraisal for the current policy can help determine the possibility of replacement coverage. 

While this is not a typical scenario, it may be viable to get a cash payout for one policy while replacing it for a similar or lower-cost option. The pandemic is unprecedented, but for now, COVID-19 is here to stay. So, we don’t know how it will continue to impact overall life insurance rates. 

A life settlement is the sale of a life insurance policy on the secondary market for cash. Life settlements have been known to pay out 10 times more than the cash surrender value of the policy. 

Life insurance agents act as the liaison in this scenario, and the clients then know you have their best interest in mind, leaving the door open for you to sign them up for another policy that is better suited for their needs. This is the perfect opportunity to help your clients and keep a consistent and trustworthy relationship going.

Sell Your Life Insurance for Cash

Selling your life insurance can be a daunting undertaking. If you are over the age of 65 years, living with a terminal or chronic illness or simply can no longer afford hefty premium payments, a life settlement transaction may be a viable option.

Life Insurance Settlements is a life settlement company with years of experience in the settlement market and understands how to keep its clients safe with regulating its life settlements. Don’t spend a year waiting for your policy to lapse, call Life insurance settlements today to learn how we can help you obtain a lump sum right now.

Rob HaynieJanuary 27, 2021

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.

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