When considering the option of selling an insurance policy the opportunity for advanced settlements should be considered. There are several names for advanced settlements but it is basically something different than a full cash offer for a policy ownership transaction. One such option is known as a ‘Paid up Death Benefit” transaction. If you still have need for some of the proceeds of an insurance policy but fear you may not qualify for reasonable premiums on the amount of face value needed but have an existing policy that is more than needed, advanced settlements could provide what you need.
Today’s market for selling an insurance policy is not as good as it was 2 years ago but is still alive and doing well for certain policies as well as an advanced settlement. Investors have been sitting on money they would like to put to work but have been more cautious about diversifying into investments that they are not as familiar with. Investing into advanced settlements such as Paid Up Death Benefit transactions is one way in which investors are entering back into the market and able to buy policies with less money out of pocket and able to justify the partial purchase of policies they previously could not justify purchasing.
This kind of transaction will provide you with a percentage of the death proceeds in your existing policy but transfer the ongoing premium payment obligation to the purchaser of your policy thereby giving you a Paid Up Death Benefit in your existing life insurance policy. The option is typically not the first option investors consider with their involvement in life settlements so if this option is what you are looking for you may have to ask specifically if your broker knows where and how to work such a transaction. To learn more information about a Paid up Death Benefit option and other advanced settlements please visit LIVEpdq.