BackLife Settlements
Article submitted by Bob Bulleck of the Life Settlement.
For more information, he can be reached at 239-263-8116.
Have your life circumstances changed so that the life insurance polices you've been paying on for years may now be a burden? Life Settlements offer an opportunity to seniors who need to get cash from their existing life insurance policies far in excess of the current cash value! If you have health problems which may limit your life expectancy to 10 years or less and cannot afford to keep your current life insurance policy (or simply don't need it anymore), then selling your policy now could be the answer for you. Unfortunately, most legal, accounting and financial advisors are not aware of this rapidly-growing opportunity for their clients!
What Is A Life Settlement:
Quite simply, a Life Settlement is the sale of your existing life insurance policy for a value in excess of the current surrender
value! No, it's not for everybody but it's ideal for the person who has health problems, cash flow issues, cannot maintain premiums
for their existing policy, or who wants to get the maximum cash out of their policy NOW! Policies can be sold for as much as 70% of
their current face value, it depends primarily on the insured's health. Most funders (those who offer to buy such policies) will
offer a no-charge appraisal.
What Type Of Policies Qualify:
Almost ANY type of policy can qualify even TERM policies with no cash value, a point often missed by many financial advisors.
However, to be economically effective, policy face value should be in excess of $100,000, but exceptions can be made in some cases.
Certainly, if a person is forced to let a policy lapse or is considering a 1035 exchange for a new policy, they should request an
appraisal on their current policy. There is generally no charge for the service.
How Does It Work:
The process is quite simple in most cases: the insured fills out a short application and agrees to have their doctor release their
medical records. The funders then analyze the current health and life expectancy of the insured, reviews the policy cash value and
future premium structure, and may make a cash offer to the insured. The insured is then free to sell their policy or keep it without
obligation. For individuals, it's recommended to use a broker who will offer the policy to many funders and obtain the best offer
available.
Life Settlements are a great new estate and financial planning tool available to seniors with circumstances which may require a need for cash now. If health and cash flow are concerns, then looking into this new service could make a huge difference.