Life Settlement – The Basics.
You’ve heard the term. You think you know what it is. You don’t know if it’s right for you. How do I go about learning more.
Well, there are several basic things you should know.
First of all, it’s not for everyone. By that I mean, not only is it right for you, but are you right for the life settlement companies. These life settlement companies typically look for more senior insureds. Those nearing or in their 70′s. They also are looking for those seniors that may have had a change in their personal health situation. Not necessarily a drastic change, but more a change that potentially effects their life expectancy.
Secondly, what type of life insurance policy do you have. The ideal type of policies are universal life policies, joint life policies (if one of the insureds has past) and term policies (if they are convertible). Some of the older whole life and investment style policies are less marketable. The life settlement companies, after purchasing the policy, will be required to maintain the ongoing premium payments until the insured’s death. So the Universal life type policies are more manageable to fund. The whole life policies are more rigid in the premium structures and less desirable.
Next, do you really no longer need the insurance policy. You should do an exhaustive review of your personal life insurance before deciding to sell your policy. There may be ways of restructuring your policy to keep for your beneficiaries. Consult with your advisor to go through this process before entering the life settlement market.
Most importantly, make sure you are working with a professional advisor who is experienced and licensed in the life settlement market. There are many moving parts to this process. Full disclosure of all phases, fee’s and parties involved should be requested. If they are reluctant to do so, then maybe you should seek better representation.
If you need a place to start visit our LIVEpdq broadcast to learn more.