In 2019 almost 10MM senior-owned life insurance policies were terminated without any value as they ran out of cash.

What is amazing is why didn’t more policy owners take advantage of a strategy called life settlements which could have provided them with cash for their policies?

The primary reasons are the following:

• Lack of awareness that such a strategy exists…some people call them viaticals and in the past, this has had a negative connotation
• Viaticals are actually the definition for those policy owners who have been medically judged to have two years or less to live
• Contact us if this is the case as perhaps we can help you obtain the maximum value from your policy from the insurance carrier or specialized buyers
• 40% of policies are called “orphan” policies as no agent is there to advise the policy owner
• Not connecting with a life settlement broker instead of a direct buyer

The broker is paid a success fee for his services selling your policy to a third-party institutional buyer generally and therefore wants to obtain the highest price possible for the client.

The direct buyer on the other hand wants to buy at the lowest price possible as they are keeping the policy for themselves.

Beware who you are dealing with before signing up with someone.

Why would someone want to sell their policy to a third party?

• Many reasons…
• Costs have gone up on their policy and it is not affordable anymore
• The reason for which the policy was purchased such as estate taxes, family income, etc. does not exist anymore
• The policy owner has a need for immediate cash to cover medical or other expenses
• The client wants to make a charitable contribution to the policy