Sell Your Policy for Cash
What's a Life Settlement?
Like a home, some life insurance policies build equity over time. As money is paid into the policy it's equity or value may increase. The policy, and it's equity is personal property, therefore if the owner chooses, they may sale it. When selling all or a portion of their life insurance, the owner will receive cash in exchange for the policy. Typically this amount is much greater than what the owner would have receive from the insurance company had they just cancelled the policy. In many cases, the owner may receive four times the amount that may have otherwise been offered. However, they will always receive less than the full death benefit of the policy.
This is known as a "Life Settlement." A settlement is not a loan, but rather a one-time cash transaction with the proceeds of the settlement being paid directly to owner of the policy. Ownership of the policy, including premium obligations and beneficiary rights, are then transferred to an institutional investment fund, which eventually collects the death benefit in hopes of making a profit.
Fund Retirement.
At age 83, Eddie began to worry that his retirement savings would fall short and that he would have to make some large cut backs to maintain his lifestyle. As he looked over his budget, and his estate plans, he realized that his life insurance policy no longer met his goals. He figured that by eliminating it's monthly premium, he would be able to keep up with the rising costs.
Eddie called the insurance company to inquire about his options. The insurance company offered him the surrender value of the policy, in the amount of $612,521. Eddie was delighted that he would receive money back, but decided to sleep on it for a day or two. While considering this decision a friend mentioned that he should call us to explore other options.
After consulting with us, Eddie was grateful that he didn't rush his decision. Because of his advanced age and medical history, Eddie was offered almost double the cash surrender value of his $2,485,065 policy. In the end we secured Eddie $1,200,000. This money went directly into Eddie’s account and he is now able to use these funds to finance all of his retirement needs.
Invest Elsewhere.
Connie owned a successful business and bought a life insurance policy, back in the 90's, so her family would be able to pay estate taxes were she to die prematurely. After selling her business she continued to maintain this policy, however, as she aged she became concerned that she may outlive it. This would result in her family missing out on the death benefit plus all the premiums that she'd paid throughout the years. In addition a past business partner approached Connie with a lucrative investment opportunity.
After consulting with her family, they approached us wanting to know what options might be available. After learning about a life settlement they decided to sell the policy instead of just cancelling it and receiving $779,398 back from the insurance company.
After negotiations Connie and her family received $3,600,000 in exchange for the $5,000,000 policy. In addition to receiving this cash, which they plan to invest, and is projected to grow substantially in the coming years, her family will receive an additional $400,000 if she happens to die within 12 months of the completed sale.
Fund Health Care.
At only 56 years-old, Adam was diagnosed with a rare, rapidly progressing form of cancer. The doctors knew that traditional treatment would do little for Adam, and recommend that he seek treatment from a clinic that specialized in the type of care that would. Unfortunely, his health insurance only covered a portion of the care he required, and left him in need of immediate financial assistance.
After connecting with us, in exactly 30 days, Adam received a lump sum settlement of $201,000. These funds allowed him to immediately secure critical medical care without passing on any medical bills or debt to his family.
The best part of Adam's story is that after receiving this incredible treatment, Adam is now cancer-free and has been able to move forward with his life and focus on his family.