Now is the time to take another look at term policies and secondary guarantee policies.

Term Policies

We have often stressed the importance of timeliness when it comes to life settlements involving term policies because it is crucial that the life settlement occurs while the policy is convertible. Non-convertible term policies can rarely be sold in a life settlement due to their increasing and costly premiums.

A new trend makes it even more important to consider term conversion life settlements sooner rather than later. Insurers are increasingly limiting which of their permanent policies that their term policies can be converted to. Often those converted policies are more expensive than previously available ones, making them less valuable in a life settlement. So, if you have clients with term policies they may no longer need or can afford, the time to act is now!

Guaranteed Premium Universal Life Policies

Guaranteed universal life policies are uniquely valuable because their performance may not be negatively impacted by low interest rates. They give would-be life settlement investors a level of assurance that interest sensitive policies do not. Consequently, even healthy insureds with these policies can be candidates for a life settlement.

As a result, guaranteed policies – both individual and survivorship — are hot! If you have clients, even healthy ones, with these policies that are considering a lapse or surrender, now is the time to give a life settlement a look.

Don’t let the life settlement opportunities presented by term conversions and guaranteed universal life slip by. Strike while the iron is hot!

As opportunities come up, or if you have questions, don’t hesitate to give us a call. As we always say, “it can’t hurt to try – – it can only hurt not to.”