Impact of Life Settlements
As valuable as a life settlement transaction can be for a policyowner, many are unaware of the option. Instead, those who wish to terminate their policies have typically resorted to one of two options, both of which forego substantial value and ultimately benefit the insurance provider:
1) Surrender the policy: Redeem the policy for its cash value. Policyowners would get a sum of money from the provider and be relieved of paying further premiums. Unfortunately, most policyowners aren’t aware that they can sell their policies for significantly more value.
2) Allow the policy to lapse: Stop paying premiums and allow the policy to lapse. All the years of making monthly payments are rendered worthless and the value of the policy is forfeited. The majority of policyowners will simply stop paying their premiums, outright losing a valuable asset in a life insurance policy that could have generated a significant cash payment.
Offering a Better Option
We serve as allies to policyholders by offering them a true market value (as much as 4x or even 8x the cash surrender value), defending them from a disadvantaged, one-sided transaction with the insurance provider.