Did you know that your life insurance policy is an asset you own? It is — just like your car or house – and it can be sold. 500,000 seniors a year will walk away from their life insurance policies, with little or nothing, leaving behind almost $100 billion in benefits. Why? The short answer is because the policy is no longer wanted, needed or affordable, and people do not know there is another option.
But why would anyone want to sell their life insurance policy? Sometimes, the reason someone bought life insurance years ago is no longer an issue or concern today. Perhaps a term policy is ending, a spouse has passed away, the house is now paid off, etc. Or, sometimes, the policy simply becomes unaffordable or no longer fits in the budget.
Policies are sold through what is called a life insurance settlement, which is the sale of a policy to a third party (usually an investor group) who gives the seller cash for the policy. The good news is that almost any type of life insurance policy can be sold: universal life, whole life, even term policies. And, like selling a car or house, clients can do anything with the settlement money they wish. Life insurance settlements have been legal since 1911, and are highly regulated by Departments of Insurance across the country.
If you no longer want or need your life insurance policy, and the conclusion is that it is time to lapse or surrender a policy, a life insurance settlement can offer significantly greater value.
Lisa Rehburg is president of Rehburg Life Insurance Settlements. She has been in the insurance industry for over 30 years and can be reached at (714) 349-7981 or firstname.lastname@example.org. For more information, visit www.rehburglifesettlements.com.