Many insurance companies offer online services that you can easily find the best deals right from your home or office.
The material below is intended as a guide. As with all life senior services, please seek professional assistance when making insurance related decisions.
Life Insurance Settlements divider
Life Insurance Settlements
In a Question and Answer Format
A life settlement is a financial transaction whereby a third party acquires an unneeded or unwanted life insurance policy from the policy holder. Life settlements provide seniors a secondary market for life insurance in which the policy owner can determine fair market value for their policy. This value may be higher than the cash surrender value from the issuing life insurance company. The purchaser becomes the new beneficiary of the policy at maturation and is responsible for all subsequent premium payments.
The following is intended to provide a broad overview of life settlements and answer some basic questions.
You should talk to a trusted financial advisor before making any decision.
What is a Life Insurance Settlement?
A senior life settlement allows seniors typically over the age of 65 to sell existing unwanted, obsolete or unaffordable life insurance policies to investing financial institutions for a lump sum cash settlement.
What are the benefits of a Life Insurance Settlement?
Settlements can help seniors to:
Stop paying premiums for unwanted policies and still receive funds higher then the surrender value offered by the carrier.
Use funds for retirement.
Use funds for health treatments or long term care.
Use funds for other investment or any other purpose
Other life settlement benefits for seniors
What are the requirements to qualify for a Life Insurance Settlement?
In order to qualify for selling your life insurance policy:
The policy holder must be at least 65 years old.
The policy must have been in force for at least 2 years
The policy holder must be a USA or Canadian Resident.
Life settlements allow seniors to benefit from their policies when they need it the most.
Here are some additional considerations
Why use a Life Settlement Broker?
Usually cases are brought to market for purchase through a licensed Life Settlement Broker vs. a Life Settlement Provider. This insures that the policy owner will, usually, get multiply offers and maximize their sale price.
Some policy owners go direct to the buyers (Life Settlement Providers) themselves. Working with a Life Settlement Provider directly only gets a single purchase quote, not multiply offers.
Providers are companies that manage the life settlement process for the ultimate buyer. We work with approximately 36 providers who represent about 100+ sources of capital. There are some cases where we go direct to the end buyer.
Providers want to buy the policy as cheap as possible, with as little competition as possible.
How much money will I get if I sell my Life Insurance policy?
The value of a life insurance policy is determined by a number of factors, including, but not limited to, the age and medical condition of the insured, type of insurance policy, rating of the issuing insurance company and amount of premium payments to keep the life insurance policy in force.
What type of Life Insurance policies can be sold?
Most types of life insurance policies can qualify, however, the most common are Universal Life, Whole Life, and convertible Term Life.
Why would I consider selling my life insurance policy?
The policy is no longer needed or wanted
To pay for healthcare costs
Premium payments have become unaffordable
Considering lapse or surrender of the policy
Change in estate planning needs
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Caregiver Advice and Long Term Care Resources
- Discover how to talk to a loved one about big issues like aging, money and health.
Investment Annuities divider
Annuity Basics
In a Question and Answer Format
The following is intended to provide a broad overview of annuities and answer some basic questions.
What is an annuity?
What should I look for in an annuity provider?
What are the different types of annuities, their advantages and disadvantages?
What types of pay-out options are available from annuities?
While this overview points out elements that many annuities have in common, there are hundreds of different annuity products available today, each with its own particular features, benefits and pay-out options. Within that very large group of annuity products, it is possible that particular annuities may behave differently than the descriptions given here.
If you are interested in annuities, we encourage you to learn as much as you can about a particular product and talk to a financial counselor you trust before making any purchase decision.
What Is An Annuity?
An annuity is an insurance product designed to provide income — either at some future date or immediately. With any annuity, the consumer makes at least one payment (called a “premium”) to an insurance company. The insurance company, in turn, agrees to provide income payments to the consumer in the future or right away. Because there are several different varieties of annuities, it is easiest to break them into two broad groups — deferred annuities (those designed to pay in the future) and immediate annuities (those designed to provide income immediately.)
What should one look for in an annuity provider?
When purchasing an annuity from an insurance company, you are placing your money, your trust and part of your future financial well-being with that company. Be sure that the company you choose has a long track record of meeting its financial obligations and is financially strong. By researching and comparing the financial condition and credit ratings of several insurance companies you will be able to make an informed decision.
Check the insurance company’s financial condition. Ask your financial counselor or your state’s insurance department for this information.
Research the credit ratings of the insurer versus those of other providers. The rating applies to the company that issues the annuity, not to any specific annuity product or to any underlying investments. The most widely-known credit rating agencies are Standard and Poor’s, Moody’s, Fitch, and A.M. Best.
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