In a world where most of us wouldn’t throw a gift card with some money still on it into the trash, (we even pause before tossing that last piece of pizza crust) why is it that some people will default on their life insurance policy without investigating its resale potential? Perhaps they just don’t know that it still has value.

American seniors surrender over $100 billion worth of the value of their life insurance policies each year because they cannot maintain the monthly premiums for a policy that no longer serves their needs. They either opt to accept a token cash settlement from their insurance company or, in a worst-case scenario, simply stop paying their premiums altogether, surrendering any remaining value their policy might hold. That’s money the policyholder is fully entitled to. The way for an individual policyholder to gain some of that investment back is to leverage the policy’s value through a life settlement and receive a payout that is much fairer. 

Turn your life insurance policy into a benefit.

If you or someone you know has a life insurance plan that has become too expensive to maintain or is simply no longer needed, take a close look at the options open to you. Merely abandoning it or accepting the insurance company’s offer of a settlement is like leaving money that you’ve worked hard for sitting on the table and walking away.

Your life insurance policy can be sold on the open market for a cash value that sometimes amounts to 4-7 times the amount you would be offered if you simply surrender it. This financial instrument is not only perfectly legal, but most states carefully regulate the secondary market in which it is auctioned. And there may not be any taxes levied on the transaction.

Awareness is the key.

Unfortunately, many consumers are unaware of this option, and a shockingly large percentage of personal finance professionals are either unaware of it as well or simply have not explored it on behalf of their clients.

That is changing rapidly.

For financial advisors, this is part of their fiduciary duty to inform and advise their clients about the possibility of a life settlement. Some have even been taken to court because they failed to do so.

The process is not complicated, especially when you engage with an experienced broker in these life settlements. Life Insurance Settlements Inc. can provide you with all the information you’ll need to make an informed decision, as well as an estimate of the results you could expect if you choose to go forward with a life settlement transaction.

A timely solution of cash.

A life settlement can be a boon to seniors who can no longer afford to pay the monthly premiums on a policy and could use a timely infusion of cash to aid in their current life situation. As the process involves a call for bids on a particular person’s life insurance policy, bidders are unlikely to favor younger people unless there is a serious health issue involved that threatens to shorten their lives. But for those in the autumn of their years, this might be just the break they need.

It’s also a common choice for corporations who routinely take out a life insurance policy on their senior-level executives. If they should terminate their employment with that company, the firm can sell the unneeded policy on the open market so that their investment is not lost.

Now that the word is out about life settlements, the market is burgeoning with investors, largely institutional, who are eager to bid on these policies, as well as informed consumers who are eager to do better than the settlement they’ve been offered by their insurance company. And why not? Most insurance policies are written by the insurers with terms and conditions firmly in their favor. Seniors in need of an infusion of cash at a challenging time in their lives deserve to get a fair deal. Many families are thankful that this option is available.

Learn about Life Insurance Settlements Today

More people should know about life insurance settlements. For some, they could be a lifesaver. 

Whether you are a senior who is contemplating the idea of liquidating your present life insurance policy or a financial professional who is not entirely clear on the concept of life settlements and how they can benefit your older clients, talk to us at Life Insurance Settlements Inc. and we’ll guide you through the process. 

You can get a better deal.

Rob HaynieFebruary 2, 2022

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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