Which of Your Client’s Life Insurance Policies Can Be Cashed Out?
As a financial professional, identifying which assets serve your clients best is a top priority. When a policy is no longer needed or premiums become burdensome, a life insurance settlement offers a powerful exit strategy. At Life Insurance Settlements, Inc., we help agents and brokers determine which policy types qualify for a high-value secondary market sale!
Universal Life & Whole Life Policies
Permanent life insurance policies are the primary candidates for a life settlement. Because these policies carry a life insurance cash value and remain in force indefinitely, they are highly attractive to institutional buyers. If your client has a universal or whole life policy they intend to lapse, a settlement is often the superior financial choice.
The Hidden Value in Convertible Term Life
Many agents overlook term insurance, assuming it has no resale value. However, if a term policy is still within its “convertible” period, it can be sold. By converting the policy to a permanent product during the settlement process, your client can cash out life insurance that would have otherwise expired with zero return.
Evaluating Group & Second-to-Die Policies
Beyond individual plans, certain group policies and survivorship (second-to-die) policies may also qualify. While these are more complex, Life Insurance Settlements, Inc. has the expertise to navigate the specific contractual requirements. If the death benefit is significant and the insured’s circumstances have changed, it is always worth investigating a potential life insurance settlement.
Key Policy Requirements for a Successful Sale
To successfully sell a policy, a few baseline criteria usually apply. Most buyers look for an insured individual who is 65 or older or has health changes. Understanding these benchmarks allows you to provide the most accurate advice when your clients consider selling life insurance policy assets.
Browse More Resources With Life Insurance Settlements, Inc.
Almost any non-term policy (and many convertible term ones) can be turned into a significant cash windfall for your clients. Partnering with Life Insurance Settlements, Inc. ensures you are providing the most comprehensive fiduciary care. Contact us today to review your client’s portfolio and discover hidden liquidity in their life insurance coverage!
