It’s an undeniable fact that an overwhelming number of life insurance polices never pay a death claim. Policy owners pay years of premium and then abandon a policy for pennies on the dollar. These lost opportunities should not be happening today because of the many options offered by the secondary market. A life settlement offers options for a policy holder to obtain much needed funds. Life settlement options can provide funds for mounting health care costs, reduce a large premium that that has become unaffordable, or merely receive a greater benefit for a policy that is no longer needed. Additionally, in the U.S. as with other products in the insurance industry, selling insurance policies in the secondary market is regulated and supervised at the state level.
It is also important to remember that policy owners are under no obligation to sell their policy in the secondary market. Any advisor who has their client’s best interest in mind (as most do) would review the policy and make a recommendation. If the client’s best strategy is to keep the policy through its duration, the advisor can make that recommendation. However, many clients can obtain a far higher secondary market value for their policy when they appraise and sell it on the open market.
If you are in a position where you think it would be prudent to consider alternatives, talk to a secondary advisor. get a secondary opinion® of the potential value of your client’s policy at https://ashargroup.com/quiz/ It only takes a minute, and it could help save your clients thousands.