A.: Generally a change in the circumstances for which the policy was purchased is a good time to review your options.
If the beneficiary is deceased, you should check your contingent beneficiary list.
If you have divorced the beneficiary, you may consider your options.
If you have sufficient resources to self insure, you may want to consider your options.
If you have found a more efficient life insurance policy and need cash to make the payments.
If your current life insurance policy is lapsing.
If your financial circumstances change.
If the policy is no longer wanted or needed.
If you are considering accepting the offered cash surrender value from your policy.
All of these are legitimate reasons to explore your options with a life settlement advisor.
Q.: Are there fees with a life settlement?If the beneficiary is deceased, you should check your contingent beneficiary list.
If you have divorced the beneficiary, you may consider your options.
If you have sufficient resources to self insure, you may want to consider your options.
If you have found a more efficient life insurance policy and need cash to make the payments.
If your current life insurance policy is lapsing.
If your financial circumstances change.
If the policy is no longer wanted or needed.
If you are considering accepting the offered cash surrender value from your policy.
All of these are legitimate reasons to explore your options with a life settlement advisor.
A.: Generally there are no fees to discuss the probability of having your policy settled; most life settlement brokers will perform this rudimentary analysis at no charge. Any fee for the actual work of settling a policy should be spelled out in advance in writing by your broker. In almost all cases you do not pay the fee unless you accept the settlement offer. Most agents will life settle on a contingent basis, they will do the work up front and your payment is deducted from the final settlement offered. You should obtain a clear written explanation of any and all fees from your broker BEFORE you begin.
Q.: How much money will I get if I settle my policy?
A.: Your offer will vary by funding source. Each source may have a different tolerance for certain aspects of your policy. It is quite common for policy holders to get more than two times the stated cash surrender value offered by the incumbent insurance company. Click here to find out if you may qualify to settle. (safe third party link)
Q.:What happens to my life insurance policy after I settle?
A.: The ownership rights and obligations transfer to the purchaser and a new beneficiary is named (usually the purchaser) who will receive the proceeds. The purchaser will be responsible for making payments and generally they will have a clause allowing them to contact you annually.
Q.: What other options are there to life settling?
A.: You can do nothing, you can accept the cash surrender value, you can consider borrowing against the policy and keep it intact, you may consider pledging it as collateral to secure a loan, you may consider conversion to a paid up policy and see if the death benefits can be reduced to reduce the premiums.
Q.: My broker says that he can not life settle my policy, what can I do?
A.: Be sure you understand exactly why he can not settle the policy. In 1911, the US Supreme Court decreed that a life insurance policy is a negotiable asset which can be sold. You should not be precluded from getting the best price for your policy and we encourage you to seek advice from a Life Settlement Broker to determine if the reason that your broker claims that he can not settle can be resolved. Life Settlement offers are not a frequent area of specialty for most insurance brokers, they may only see one a year. By contacting a specialist in the Life Settlement field, you increase the probability that you will obtain maximum value for your policy.
Settling a policy is a simple painless process if you are informed about the pitfalls and myths often associated with life settling.
Do your homework, work with a qualified professional, and make an informed decision.
Consider donating a portion of your "found" money to a charity of your choice, or consider donating your life insurance entirely to a charity.
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