the secondary market
Life Insurance and Annuities are assets, like real estate, that have a market value based on supply and demand. If you no longer needed your home, you could sell it on the open market for a fair price to a qualified buyer. It’s the same with Life Insurance and Annuities. We call this exchange The Secondary Market.
get a secondary opinion®
The Secondary Market has grown exponentially over the past 10 years generating billions to consumers over their cash surrender value. Policies can often have considerably more value on the Secondary Market at the time of lapse or surrender than the insurance carrier will provide.
Prior to the emergence of The Secondary Market, policy owners had few options when surrendering or lapsing a policy. Traditional exit-strategies (letting it lapse, surrendering the policy, or completing a 1035 exchange) are smart choices in some circumstances, however, the potential for a policy to be sold on the Secondary Market and to generate cash flow makes it an attractive alternative for advisors and their clients.
Typically, asset value can be unlocked and dispersed in a variety of ways including a life settlement, a split benefit settlement, long term care benefit settlement and term life insurance settlement.