Prior to creation of the life settlement policy market, life insurance policy owners had only a few choices when they wanted to terminate their policy. They could surrender their policy to the insurance company for the policy’s cash value, they could let the policy lapse or they could reduce the death benefit to the lowest level that would allow the policy’s cash value to pay for a reduced death benefit.
A new, often more valuable, choice is available for insurance policy owners – it is to do a life settlement or sale of an insurance policy.
The sale of a policy in the life settlement policy market place has often provided, to the policy owner, five to ten times the policy surrender value.
Even if there is no cash surrender value, a life settlement policy sale can possibly generate substantial cash for the owner.
Some of the factors that need to be consider are when selling a policy are:
Future premium requirement
Current cash value
Policy loans
Financial rating of the insurance company
Insured’s life expectancy
Current interest rates
If you have any questions about a life settlement, please be sure to click LIVEpdq link now to be connected with a competent advisor.