As people age, life changes, and so does your need for a life insurance policy. Usually taken out at a time where one hopes to protect their spouse, and/or their growing families, or perhaps to help make mortgage payments, the need for said protections disappear as time goes on. Children grow into adults, mortgages are paid off, spouses are lost, and that policy can become obsolete.
What policy owners don’t know is that if they’re 65 years of age or older and aren’t suffering from a terminal illness, they have the option to sell an in-force life insurance policy for an amount discounted from the face value. If this sale is done at the right time, it can create options for the policyholder while other assets that may be less beneficial to liquidate can stay as they are. It’s called a life settlement, and if you haven’t heard of it, you’re not alone.
These large lump sum of liquid payments, which are legal in 42 states and regulated by the State Insurance Commission, can greatly benefit both the agent and especially the client. Anyone who fits the criteria, who wants a lump sum of cash with no strings attached in exchange for an unwanted, unneeded, or unaffordable life insurance policy, especially those over $100,000.00, should seriously consider life settlements.
The issue, though, is that there is a lack of awareness, knowledge, and understanding about life settlements, which is why financial and legal professionals have yet to embrace and capitalize upon them. They don’t understand how to proceed appropriately without jeopardizing the needs of their client.
However, in today’s market, which is absolutely a “Policy Seller’s Market”, Life Settlement Specialists have emerged to help policyholders create liquidity from a previously illiquid asset: the underlying life insurance policy.
And so, at a time when many are able to finally start enjoying life a little bit more, these settlements are very attractive to people who may want to use life settlements as a strategy to eliminate cost of premiums while providing a lump sum cash infusion.
Seek out a Life Insurance Specialist with experience and industry knowledge to grasp a more in-depth understanding that caters to your exact needs, as well as your exact policy.