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Life Settlements

Life settlements represent one of the most important financial innovations of the past 30 years and have changed the way we think about life insurance. By recognizing the fundamental right of policyowners to assign their policies, life settlements have created a competitive life insurance market where consumers enjoy new options and greater value every day, unlocking the market value of life insurance and transforming unneeded policies into assets with significant value.

In its simplest terms, the secondary market for life insurance means that policy owners no longer have to accept surrender value. By selling their under performing life insurance policy in a competitive marketplace, the policy owner can on average realize four times the cash surrender value, or more.

The implications are profound.  Like other assets, life insurance can now be valued in an open marketplace. By simply submitting basic information about the policy and the insured’s health, I can shop the market and obtain what the policyowner would likely receive, either as a cash payment or to retain a portion of death benefit with no future premium payments. This valuation provides a powerful new tool for evaluating and managing a client’s financial health.

There are a variety of situations which may lead someone to re-evaluate their life insurance needs, including:

  • Long term care funding – a policy owner who needs assistance funding long term care can sell their life insurance and use the proceeds to help offset the cost.
  • Recouping term premiums – a policy owner who no longer needs their convertible term policy can use a life settlement to eliminate future premiums and recoup a portion of their overall premium outlay.
  • Restructuring cash flow – a policy owner with limited cash flow can use the proceeds from a life settlement to fund a reduced policy with lower premiums.
  • A need to eliminate premiums and retain a portion of coverage – a policy owner may find they need to retain a certain level of coverage. Through a life settlement, a policy owner can keep a portion of their coverage while eliminating future premium obligations, in lieu of a cash payment.

We make the process simple. Basic information about the policy and the insured’s health is submitted to our office and we will shop the market.  Upon review, the policy owner will receive an offer either in the form of a cash payment or the amount of death benefit they can retain with no future premium obligations.

Who qualifies for life settlements? Ideal candidates for life settlements are age 65 or older with:

  • A life insurance policy with a face amount of at least $100,000.
  • A change in health since the policy was issued.

A life settlement can be a good option for a variety of reasons which include:

  • Policyowner may have outlived the risk insured against.
  • Spouse has passed away.
  • Business partnership has dissolved.
  • Key employee has retired.


  • Funding retirement – A recent report by the World Economic Forum found that the retirement savings gap for the average American has steadily increased. Men are living 8.3 years longer than they have the retirement dollars to fund and women are living almost 11 years longer, and many are forced to make difficult decisions to help make up for the increasing gap in their retirement savings.
  • Premiums are no longer affordable – Depending on the terms of a policy, changes in the insurance market and poor policy performance can drive up premiums.
  • Funds are needed for a costly or unexpected expense – Faced with financial changes or hardships, many need to liquidate their policy, or a portion of it, to be able to fund a large expense. Receiving a lump sum can be essential to fund assisted living or cancer treatments or paying medical bills.
  • Lifestyle changes – A number of lifestyle or business changes are often the reason many consider choosing a different policy option. This could include divorce, retirement, the absence of an estate tax burden, beneficiaries who no longer need or want the policy benefits, or when a family business is sold and that policy is no longer necessary.

Life insurance is often one of a senior’s most valued asset and one they can use to potentially alleviate retirement challenges.

A life insurance policy is living benefit and selling it for fair market value is a legitimate, safe and viable choice to create more options for retirement income, funding medical needs, and more.

We handle each case individually and will walk you through the entire process.  Our approach is to be honest, consistent and transparent at every point, and to bring maximum value to you.

Please call me or contact me for more information.