“consumers netted $5.62 billion more cash from life settlements”
Seniors Can Sell Their Life Insurance for Cash
A life settlement gives qualified policyholders the ability to convert their life insurance coverage into cash by selling it in a secondary market to companies known and Life Settlement Providers. Just like the sale of a car or home, selling a life insurance policy means that all rights, the title, and future interest are legally transferred to the purchaser. The purchaser assumes all responsibility for future premium payments and retains the rights to the future death benefit.
The secondary market for life insurance policies was first developed in response to the limited options offered by life insurance companies for consumers who could either no longer afford their premiums or had experienced a life changing event. Thanks to the life settlement industry, consumers have the option of selling their life insurance assets at fair market values instead of letting their polices laps, leaving them with either a nominal payout or more often nothing at all. These financial tools give consumers the ability to use their policy to obtain a cash payout that can be used to cover necessary costs, including living expenses and long-term care.
Since life settlements where first introduced, thousands of consumers have taken advantage of this financial instrument. From 2006 – 2009, consumers netted $5.62 billion more cash from life settlements than the comparable amount being offered by the life insurance company, according to the 2010 Life Settlement Study conducted by the U.S. Government Accountability Office. This is an average of 800% more value.
If you are looking for more information on selling your life insurance policy feel free to contact us.
For a quick estimate of your policy value be sure to use our online life settlement calculator.