As clients get near the end of their policies, many factors begin to come into play. Changing investment needs may not allow time for their universal life policy to mature. Or they no longer need their term life insurance policy, or they just want to redirect premium payments and any cash available from their policy to new investment opportunities. Whatever the reason, a life policy settlement can help your clients maximize their retirement income by recouping premiums or realizing a substantial payout from the secondary market for their life insurance policy, even their term policy.
A life settlement is a financial transaction that enables a policy owner to appraise and sell their life insurance policy. Similar to a piece of real estate or other valuable assets, the client can sell their policy for an amount higher than the cash surrender value, but less than the full death benefit. This in turn enables them to fund a variety of needs — from retirement and lifestyle choices, to healthcare and planning opportunities. And according to a 2010 study by the Government Accountability Office, life settlements deliver almost 8 times the surrender value to seniors.
Nothing is more important than finding ways to maximize your clients’ retirement income. So rather than letting a policy lapse or realizing an inferior rate of return, a life policy settlement may offer a way to sell the life insurance policy for more than the cash surrender value.
Take a moment right now to get a secondary opinion® of the potential value of your client’s policy at https://ashargroup.com/quiz/