Navigating Medical Testing in Life Settlements: Henry's Story
How Medical Testing Can Impact Your Life Settlement Offer
Henry, an 85-year-old retired businessman, faced a difficult decision that many life insurance policyholders encounter when considering a life settlement. His situation serves as a valuable lesson for others in similar circumstances, especially when it comes to the role of medical testing in determining the value of a life settlement.
Henry had spent decades building his business on the West Coast, but as he aged, health challenges began to mount. His PSA levels were elevated, raising concerns about the possibility of prostate cancer. His doctor recommended a biopsy to confirm the diagnosis, but Henry, overwhelmed by recent life events—including his wife’s move to a nursing home—decided against further testing. He was tired, emotionally drained, and simply wanted to avoid additionalmedical procedures.
When Henry decided to explore a life settlement for his $5 million life insurance policy, his health status became a critical factor. Life settlements involve selling a life insurance policy to a third party for a lump sum that’s less than the death benefit but more than the surrender value. The amount offered by potential buyers is heavily influenced by the policyholder’s life expectancy, which is often determined through medical records and tests.
In Henry’s case, the uncertainty surrounding his potential prostate cancer diagnosis complicated the valuation of his policy. Buyers were hesitant to offer the $2 million he sought without a clear understanding of his health status. However, Henry’s reluctance to undergo further testing limited the buyers’ ability to accurately assess the risk, leading to lower offers. This situation highlights a key issue in the life settlement process: the importance of medical testing. Comprehensive medical information allows buyers to make more informed decisions, often resulting in higher offers for the policyholder. While the decision to undergo testing is deeply personal and must be respected, it’s crucial to understand how it impacts the financial outcome of a life settlement.
For those considering a life settlement, here are a few important considerations regarding medical testing:
- Understand the Impact: Medical testing can significantly influence the amount offered for your policy. A clear diagnosis can lead to a higher offer, as buyers have more confidence in their assessment of your life expectancy.
- Consult with Professionals: Before deciding on or declining medical tests, discuss the implications with your doctor, financial advisor, and life settlement broker. They can provide guidance on how your decision might affect the life settlement process
- Weigh the Pros and Cons: Consider your overall health, comfort level with additional testing, and your financial needs. If you’re aiming for a specific amount in your life settlement, testing might be necessary to achieve that goal.
- Alternatives: If you’re uncomfortable with invasive tests like biopsies, discuss alternative ways to gather necessary health information with your broker. In some cases, detailed medical records or non-invasive tests may suffice.
Henry’s story is a reminder that while medical testing can be daunting, it plays a crucial role in maximizing the value of a life settlement. By making informed decisions and consulting with professionals, policyholders can navigate this complex process more effectively, ultimately achieving the financial outcomes they desire.
Asset Life Settlements has the credentials and secondary market expertise to negotiate the highest possible cash offer for a policy.More importantly, we have a fiduciary obligation to represent the policy seller’s best interests throughout the entire transaction.
Call us at 1-855-768-9085 to discuss your questions or to request a free policy appraisal.
