How much is my policy worth?
You can use our Life Settlement Calculator to estimate how much your policy is worth.
Note that each case is specific and there is no one-size-fits-all answer. Each case is handled individually with the utmost confidentiality and sensitivity, as understanding your options will require knowledge of personal details like health status, age, policy type and goals for the future. While there are a few factors that can help you determine the likelihood your policy has a high cash value, including your age and the type of policy you own, we recommend contacting us to learn more about your options and the potential value of your policy.
Discover Your Life Insurance Options
Your life insurance policy is your personal property… …not the insurance company’s. However, most individuals let their life insurance policies lapse, and that equity is forfeited back to the insurance company. Our mission is to help clients better understand all of their financial options. We provide clients with all the needed information, so they can make the best financial decisions for their future. Whether you are planning for retirement, consolidating an estate plan, or facing a severe illness or medical issue, we can help you decide if selling all, or a portion, of your life insurance is the right choice for you. We will walk you through the entire process, depicting the meaning behind every number — all policy valuations, underwriting, costs, and returns — so that you can choose the best route for your personal financial situation. We are here to help you.
What is a life settlement?
Life insurance is often a senior’s most undervalued asset and one they can use to alleviate retirement challenges. A life insurance policy is a 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. The equity built in a policy is personal property and can therefore be sold if the owner of that property no longer needs it or believes they can better utilize those dollars.
When should you consider selling your insurance policy?
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 retirement dollars to fund and women are living almost 11 years longer. 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.
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.
What are my options?
Traditional: Receiving a cash amount above the policy’s surrender value. You have no further obligations or claims to the policy and all future premiums are paid by the buyer.
Retained Benefit: You will no longer pay any premiums and retain a portion of your benefit. Beneficiaries will receive a guaranteed percentage when the policy ends but you will have no further obligations to pay future premiums.
Hybrid: A combination of traditional (cash) and retained benefit. With this option, you receive a cash payment now and your beneficiary receives a guaranteed percentage of the benefit when the policy ends. You will have no further obligations to pay future premiums.