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A life settlement is the sale of an unwanted life insurance policy to a thirdparty buyer for more th

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A life settlement is the sale of an unwanted life insurance policy to a third ... term care, or to create an immediate income stream through the use of an annuity. ... – PowerPoint PPT presentation

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Title: A life settlement is the sale of an unwanted life insurance policy to a thirdparty buyer for more th


1
LIFE SETTLEMENTSWhat is a Life Settlement?
  • A life settlement is the sale of an unwanted life
    insurance policy to a third-party buyer for more
    than the cash surrender value but less than its
    net death benefit. If your health is not as good
    now as it was when the policy was issued, or if
    the policy is under priced, a third-party buyer
    may be willing to pay more for your policy than
    you can get by surrendering it to the life
    insurance company. Payments from life insurance
    settlements can be many times greater than the
    cash surrender value. Life settlements offer a
    reasonable and profitable exit strategy that
    addresses the financial objectives of
    policyholders.
  • A life settlement gives policyholders an
    important new option to consider when planning
    their retirement. Typically, a person who wants
    to get rid of their life insurance policy can do
    one of two things, 1) stop paying the premium and
    let the policy lapse or 2) surrender the policy
    to the issuing insurance company for the cash
    surrender value. Entering into a life settlement
    is a third option that allows the seller of the
    policy to potentially obtain more value, on
    average 20 more, for their policy than they
    could receive from the issuing insurance company.
    It allows them to move forward with a better
    financial strategy, whether it is the purchase of
    a more cost effective policy, a different type of
    policy survivorship, long term care, or to
    create an immediate income stream through the use
    of an annuity.
  • Many American seniors, typically those 70 years
    of age or older, are discovering that life
    insurance policies that once seemed appropriate,
    no longer meet their needs. Changing priorities
    or dissatisfaction with life insurance policies
    has driven many policyholders to discontinue
    their existing life insurance policies. While
    policy owners have had a legally protected right
    to sell (or assign) a life insurance policy for
    almost a century, until recently, very few have
    taken advantage of this opportunity. There is
    absolutely no reason to hold onto an unattractive
    policy when better guarantees and higher coverage
    at lower premiums are a viable option.
  • Clients are recognizing that life insurance is
    merely one asset within an estate or a financial
    portfolio that should be managed for optimum
    outcomes. They are no longer willing to treat
    life insurance as an untouchable product that
    must always be held until death

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