What Is A Life Settlement?
Life Settlement is the sale of a life insurance policy that gives a policy owner a cash settlement in excess of the current cash surrender value.
Who Is A Typical Candidate?
• Anyone who owns a policy that is not performing
up to expectations.
• Someone who can no longer afford their premiums.
• Anyone who no longer needs their coverage.
• Someone who intends to lapse or surrender their
policy.
• Retiring key executives, officers in a company,
senior partners or someone selling a company or partnership
share with a policy that is no longer needed.
• Someone going through a divorce or bankruptcy
liquidation.
• Anyone who needs funds for alternative investments.
• Someone who has obtained a valuation already and
wants to know if it is the best offer available.
• Anyone who's health has changed since they purchased
their policy--for better or worse.
Life Settlement Parameters
• Clients age 65+ • $100,000 minimum face
amount
• Low cash surrender value (below 30%)
• Minimum loans (below 30%)
• Low premiums (below 4%)
• Ownership can be through an individual, a
corporation or a trust
Types of Policies
• Term (if convertible)
• Whole Life
• Variable Life
• Universal Life
• Survivorship (any type)
• Adjustable Life
• Joint First to Die
• Group (if convertible)
Tax Implications
• Term (if convertible)
• Whole Life
• Variable Life
• Universal Life
• Survivorship (any type)
• Adjustable Life
• Joint First to Die
• Group (if convertible)