Wednesday, November 18, 2009
CAN LIFE SETTLEMENTS WORK FOR YOU AS A NEW SOURCE FOR FUNDS?
· Your term policy can be evaluated in the Life Settlement Market if it can be converted to Universal Life; it would be converted during the closing process
o If your health has deteriorated to the point where premiums on new life insurance would be cost prohibitive converting term to universal or whole life may be the only viable option
· Have your whole life premiums escalated making you consider surrender or lapsing the policy perhaps for low cash payout? A Life Settlement MAY BE THE BEST SOLUTION – cash out under performing insurance and use the proceeds to purchase more appropriate coverage.
· Does your business hold life insurance that may no longer be necessary, and in need of reevaluation and change to life settlement or other solution, e.g.
o due to retirement of key executive
o partnership dissolution
o executives who do not wish to keep a policy in a retirement package in force
o change of business ownership
o exit strategies for benefit programs
o proper market asset valuation of business owned life insurance
· Do you have life insurance providing a deferred benefit to a charity, and if so, would you prefer a solution that will make more immediate donations during your lifetime? If yes, consider a life settlement solution. The charities then will not have premium obligations when you pass on.