Life Settlements in Business is an area you must educate yourself on. Life Settlements in Business have become a viable and more profitable alternative to surrendering, lapsing, or exchanging policies. According to industry reports, the total value of life insurance policies held by senior citizens is $500 billion. This year alone, the Life settlements industry is expected to produce $8 billion in life settlement sales
In one case, a company was sold and its advisor allowed the key person life insurance policy, which was term, to pass to the purchasers of the company as part of the assets. The purchasers of the company were able to sell the policy for a very substantial amount, because they knew about the potential value of life settlements. The advisor’s errors and omissions insurance had to pay the original owner to settle a claim arising from the advisor not obtaining the value of the policy for his client.
Life Settlements in Business provide numerous benefits to policyholders.
Policy owners benefit from being able to unlock cash for any purpose including:
- Using the settlement proceeds as a dump-in to purchase a more cost effective policy.
- Improving their financial situation when an unwanted policy is too expensive.
- Providing cash for policies that have outlived their intended purpose.
- Providing corporations with an asset in merger and acquisition negotiations.
- Rescuing failing policies within pension plans.
- Unwinding life insurance after either a change or updated legal interpretation of the prevailing tax law.
- Providing businesses with a financial windfall from policies that are no longer needed, e.g. life settling terminated buy-sell agreements and key-person policies on departing executives
If you are interested in learning more about life settlements, click on the LIVEpdq link at the top of this page to learn more about a life settlement transaction. We can give you an estimate of your policy or you can request more information.