“Most policyholders are unaware the life settlement option exists. Consequently, seniors lose $112 billion/year to insurance companies.“
A life settlement is a transaction in which a life insurance policy is sold to a third party. The buyer of the policy becomes the new beneficiary and takes over the monthly premiums.
In the past, if you owned a life insurance policy that you no longer wanted or needed, you generally had five choices:
Life Settlements present another option: selling your life insurance policy to a third party for cash.
Over 100 years ago the Supreme Court ruled that your life insurance policy is personal property and can be sold. So, a life settlement is selling an existing life insurance policy to a third party for more than the policy’s cash surrender value.
Due to greater regulations and consumer awareness, the life settlement market continues to grow. Seniors are opting for these kinds of deals for many reasons including relief from costly premiums, liquidating assets as a means to pay for long-term health care, retirement planning, generating substantial cash for children and grandchildren, they simply no longer want or need the policy, and other various reasons. Instead of simply accepting what the insurer offers for the cash surrender value of your policy, explore the many benefits in a life settlement.
According to the London Business School, “We find that policy owners selling their policies collectively, receive more than four times the amount they would have received if they surrendered their policies to their respective life insurance companies for it’s cash value.”
Moreover, the Life Insurance Settlement Association (L.I.S.A.) stated that policy owners usually receive about 4 times more than the surrender value of the policy.
Forbes August 2016 stated that the federal government announced that premiums for nearly all of its existing long-term health care insurance policies would increase—by an average of 83 percent. In June, the Boston globe reported that the John Hancock Company were sending notices to some of its older policyholders informing them their premiums would be going up immediately— by about 20 percent.
As a result, an increasing number of seniors are using the cash they receive from their life settlements to pay for their long-term health care premiums.
You’ve worked hard and sacrificed so much along the way. So, now is the perfect time to start taking those dream trips that add richness and joy to life. Whether your dream travel is local or global, many people choose a life settlement to fund travel plans and see the world.
Many seniors are living less robustly than they would like. An article in Senior Living states that “Nearly 40 percent of retirees have a problem with their level of debt.” Many people are learning that a life settlement offers the opportunity to pay off this debt.
According to SilverCross.com, seniors spend nearly one-fifth of their income on dining out and entertainment. Life Settlements offer seniors funds so they can keep enjoying the lifestyle they’ve worked so long and hard to acquire.
The National Center for Policy Analysis reports that seniors aged 75+, hobbies and pets account for a growing percentage of monthly expenses – to the tune of nearly six percent annually since 1990.
If a Life Settlement sounds right for you,
F.J. O’Donnell Group will consider any life insurance policy. However, we have found the most appealing policies in the life settlement market are:
Policies with conversion privileges have become highly valued. Policies are most likely to be sold when:
Typically the Life Settlement process takes 90-120 days depending on the complexity of the case. Simple transactions can be completed in less time. O’Donnell Group’s job is to represent the interests of the policyholder and nobody else. We’ll advise you during each and every step along the way. The process usually goes like this:
There is no cost to the policy owner. We also provide free life settlement consultations for people looking to sell their life insurance policy.
For a life settlement involving the sale of a Universal Life and a Whole Life policy, we receive a percentage of the final settlement price (the price paid by the buyer to the seller).
For a life settlement involving a convertible term life policy, our compensation comes either from the final settlement amount or from the standard agent commission paid by the insurance carrier for the conversion.
If a Life Settlement sounds right for you,
The life settlement market is on the rise. An increasing number of policyholders are realizing life settlements can yield a much higher payout than surrendering or lapsing your policy. However, life settlements may not always be the best fit for everyone. We always recommend you speak with a financial planner when considering selling your policy.
O’Donnell Group is committed to making you aware of all your options. So, even if it means we don’t make a profit, making people aware of options like accelerated death benefits is still our highest priority.
There are many reasons as to why someone would opt to keep their policy or choose a route other than a life settlement transaction.
Our job at O’Donnell Group is to present all of the options and not pressure someone into a life settlement if there are better options available for you.
If a Life Settlement sounds right for you,
Yes, life settlements come with many potential benefits. But, as with any financial strategy, you must consider all of your available options in addition to the risks involved.
If a Life Settlement sounds right for you,
