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Product Feature, March 7, 2005:
Life Settlement
Awareness
"If you are past the years when you need those large
life insurance policies for the security of your loved ones, then
maybe it's time to consider turning them into cash you can use
now."
Sometimes
Selling Unwanted Life Insurance Makes Sense
A life
settlement is the sale of an unwanted life insurance policy for a
lump sum of cash. The amount received is greater than would be
received by surrendering the policy to the insurance provider.
Life Settlements are sometimes referred to as Senior Settlements.
What does Life Settlement Awareness
offer you?
»
Access to answers to any questions you may have
» Access to Expert Staff to guide you through selling your policy
» Access to the nations leading funders
Why Would Anyone Sell Their Policy?
Typically, we find that most people simply no longer have a need
for the coverage or can no longer afford the premium payments.
Sometimes, the purpose for which it was purchased no longer
exists.
Reasons such as:
- The estate has been reduced to a point that the tax burden no
longer requires coverage to pay the estate tax.
- The spouse/primary beneficiary has died.
- Policy Owner is in the process of or has gone through a divorce.
Note: In the past, the only policies that were considered of value
as a marital asset were those with cash value. Now, Term Insurance
which has no cash value component, has a value.
- Policy Owner is in the process of or has gone through a Personal
or Business Bankruptcy
Note: In the past, the only policies that were
considered of value as a personal or business asset were those
with cash value. Now Term Insurance, which has no cash value
component, has a value.
The Buy-Sell or Key man policy is no longer needed due to
retirement or death of a partner or the company no longer exists.
- The Universal Life policy that was supposed to self fund itself
(sometimes referred to as a disappearing premium) isnt performing
as desired and now significant premiums are required to keep it in
force.
- The Split-Dollar policy on a key employee has been challenged or
disallowed by the IRS.
What could be done with the proceeds of the sale?
The
sale of the policy allows the policy owner to realign their assets
and cash flow. They are doing so, by taking a formerly illiquid
asset and turning it into cash for other purposes.
Purposes such as:
Unexpected medical expenses
Long term care expenses
Replacement of older expensive policies with new less expensive
policies
Charitable gifts made while your are alive to see your money put
to use
Educational expenses for the grand children
Second homes
Vacations
Celebrations
Or whatever you find of value
Now
instead of simply surrendering the policy to the insurance
company, the policy owner can sell it for much more. In the case
of Term Insurance that has no cash value, hence no surrender
value, now there is value where there was none.
It
should be noted that surrendering a policy for the cash surrender
value is, in effect, the same as selling the policy back to the
issuing insurance company. The Life Settlement industry has
created a secondary market and therefore competition for policies.
Most people are not aware that many of the institutional investors
who purchase these policies are, in fact, insurance companies
along with pension funds and hedge funds etc.
For
more information, LifeSettlementAwareness.com operators are
available 24 hours a day, 7 days a week to take your call.
888.224.2365
Visit our website
for more information, FAQs, and typical situations where Life
Settlement is appropriate. |
