A Life Settlement is, quite simply, the sale of a life insurance policy. Traditionally, when the fundamental need for life insurance disappears because of changing circumstances, policy-holders have had two basic choices: surrender the policy for the cash value or let the policy lapse. Now, policyholders and their financial advisors have a powerful, new option! The sale is done in the secondary market and can provide a life insurance client who is within 10-15 years of his/her actuarial life expectancy the opportunity to sell their existing life insurance policies and to receive a cash amount in excess of cash surrender value.

Imagine having the opportunity to help your client convert a soon-to-be-lapsed or surrendered life insurance policy into an asset with significant economic value. With a Life Settlement, that is now possible.

What’s revolutionary about Life Settlements is that it expands the concept of contingency. Before now, if a policy lapsed or was surrendered, the at-risk component became worthless. Any value was, in effect, ceded back to the life insurance carrier. With Life Settlements, for the first time, that value remains in the control of the policy-holder. This represents a sea change in how clients, financial advisors and other professionals in the industry will come to look at life insurance. For the first time, the embedded value is no longer automatically an asset of the life insurance company. It is, in fact, an asset of the policy-holder.

With a Life Settlement, you can help your qualifying
clients to plan and use their life insurance policies
proactively as a new source of wealth.