Life Settlement Appraisals: What it Means in the 4th Quarter

History has shown that the 4th quarter of the year can be one of the most beneficial times to discuss the life settlement option with your senior clientele. Life settlement buyers tend to become more aggressive with their offers as these funding sources are trying to spend their allotment of capital. A few key areas to keep in mind for life settlement appraisal include:

Term policies or riders that are about to expire, come to the end of their current premium guarantee or lose their conversion privilege. 

Term policies are the life settlement prospects which are most often neglected. Many advisors and clients don’t realize that a term policy (including group term), if convertible, can be sold in a life settlement. Since term policies almost never have cash surrender value, a life settlement can truly provide “found” money.

Retirement Expenses

People commonly review their financial resources and expenses upon entering retirement. At that time, it is not unusual to find life insurance company policies that are no longer needed that were bought to replace income upon the death of a wage earner. 

Additionally, the cost of such policies, especially if term insurance, may become unaffordable. These policies can be great candidates for a life settlement and the proceeds can really make a difference in retirement. With the aging and retirement of baby boomers, they represent a massive market for potential life settlements. 

The policy is no longer affordable due to performance

Interest rates have been at historic lows for an extended period of time. Many Universal Life policy owners are now being blindsided by premium requirements that dramatically exceed what they expected to pay when the policy was issued. In addition, premium payment increases may also disturb their estate plans by exceeding their annual gift tax exclusion.

Chronic Illness Medical Records

While chronic illness would ordinarily be a time when the death benefit of a life insurance policy would seem most imminent and most valuable, certain illnesses are long-term in nature and require very costly medical or custodial care. When all else fails, a life settlement can provide a critically needed cash payout to help pay for those expenses. 

Life Settlement Transactions

An experienced life settlement company understands the complex ins and outs of the life settlement industry. If you know an insured person who needs to pay hefty medical bills for a terminal illness, or have a client who needs help receiving the death benefit for a loved one, call Life Insurance Settlements today. We can help you sell your life insurance, even if you have previously shopped a life settlement case, the end of the year can be a good time to revisit those offers.

Rob HaynieDecember 9, 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.

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