Why would anyone want to sell their life insurance policy? Many people think that only the very ill can sell their policies. This is simply untrue. The life insurance settlements industry essentially started in the mid-1980’s as viaticals, with terminally ill clients selling their poilcies to pay medical bills or improve their quality of life. Some people think that is still where we are today, but the market has changed dramatically since then. Even though viaticals still exist, they are a very small percentage of sales. Life insurance settlements are different, focusing on clients who no longer want or need their policies.
An investor group who buys life insurance policies does consider a client’s health and life expectancy when determining how much to offer on a policy. It is true that the shorter the life expectancy, the higher the value paid for the policy. But, that does not mean that clients who are relatively healthy cannot sell their policies. An investor group also considers the premiums that need to be paid and the face value of the policy in making a determination about how much to offer a client. There are many instances where investors are willing to purchase the policy of a relatively health individual. Every client’s situation is unique, but their relative health does not preclude them from selling their policy.
If there becomes a time when a client no longer wants, needs or can afford their life insurance policy any more, looking into a life insurance settlement can make a lot of sense. On average a settlement garners 3 – 5 times cash surrender value, and even term policies can be sold. Please consult your financial, insurance and/or legal professionals first, but if all alternatives have been considered and the conclusion is that it is time to lapse or surrender a policy, a life settlement can offer significantly greater value.
Lisa Rehburg is President of Rehburg Life Settlements, a life insurance settlements broker. The company represents clients to market their unwanted/unneeded life insurance policies, with access to over 30 investor groups, obtaining the highest price for the policy possible. Local to the Coachella Valley, Rehburg Life Settlements works with clients across the country. Please feel free to contact us any time we can be of assistance: (714) 349-7981, firstname.lastname@example.org, www.rehburglifesettlements.com.
Last modified: March 10, 2020