Life Settlements
A planning technique that includes the sale of a life insurance policy to a qualified institutional buyer in exchange for an amount that exceeds the surrender cash value.
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Insurance Discussion Prompts: Short-Term Planning
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Insurance Discussion Prompts: Life Settlement
Insurance discussion prompts to begin a meaningful client conversation about life settlements.
Solution Snapshot
Life Settlement
Policy originally placed for estate planning purposes but rendered unnecessary after additional gifting and estate planning. An out-of-pocket premium was coming due for a policy the client no longer wanted or needed.
Candidates
Solutions are not one size fits all. For every planning technique, there are determining factors that illustrate whether the technique will fit the planning for an individual, family, business, or non-profit organization. Outlined below are ideal candidates who might benefit from exploring Life Settlement solutions.
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A life settlement is the sale of an existing life insurance policy to a third-party investor. This process involves transferring ownership of your existing life insurance policy in exchange for a lump sum of cash. You can receive an immediate cash payment that is typically greater than the policy's surrender value but less than the full death benefit. Ownership and beneficiary rights of the policy are transferred to a licensed buyer, often an institutional investment group or fund. Offers are influenced by factors such as your age, life expectancy, and specific policy details. The buyer assumes responsibility for paying all future premiums, reserves the right to check in on your health, and will collect the entire death benefit upon your passing. It's important to note that your beneficiaries will not receive the death benefit after the sale.