Life Settlements for Term Life Insurance Policies a Profitable but Little Known Financial Strategy for Seniors
Orlando, FL, Feb. 6, 2019 - Asset Life Settlements, LLC today announced a growing trend in the number of seniors choosing to sell their unwanted term life insurance policies in the secondary market. The company noted, however, that many seniors are still unaware that term policies (with a conversion option to a permanent life insurance policy) may also be sold for a substantial cash settlement.
“The life settlement marketplace is changing the way senior policy owners view their exit options from permanent life insurance coverage that they no longer need,” said Jeff Hallman, Co-Founder of Asset Life Settlements LLC. “But we have more work to do in terms of educating seniors that certain term policies may also meet the qualification factors for a life settlement and can provide an unexpected source of cash for long-term care or other needs.”
The company cited the case example of a 70 year-old male with a $3 million trust-owned term life insurance policy that became obsolete due to changes in the federal estate tax exemption. Upon the advice of his estate attorney and insurance advisor, the senior converted the $3 million term policy to a UL policy, and then decided to sell $1 million of the face amount in order to boost the cash assets in his estate plan. Asset Life Settlements brokered the $1 million portion of his policy and negotiated a life settlement in the amount of $152,500 payable to the ILIT for distribution to his heirs.
A second case example involved a $1.5 million 20-year-term key man policy purchased when the business owner was 60 years old. At age 75, he converted the term policy to a UL policy and then four years later decided to retire. Rather than allow the policy to lapse as he entered retirement, the insured decided to sell the policy. We negotiated the transaction for a cash windfall of $161,250 which the seller used to enhance his retirement from the business.
“Today there is a ‘smart’ exit strategy for seniors owning life insurance policies they no longer need. The cash from a life settlement is often a ‘life saver’ for seniors who need additional cash in their retirement years,” said Scott Thomas, Co-Founder and Managing Partner. “Living until age 100 is the new reality. For seniors who fear outliving their savings, the additional cash from a life settlement can provide them with peace of mind.”
About Asset Life Settlements, LLC
Asset Life Settlements is a leading life settlement brokerage and secondary market advisory firm. Located in Orlando, FL, the company is dedicated to negotiating the highest market value for life insurance policies in order that senior policy owners can “sell with confidence.” As a member of the Life Insurance Settlement Association, the company is committed to industry best practices and is authorized to do business in 47 states. For more information, call 888-335-4769 or visit www.assetlifesettlements.com.