A Life Settlement Is NOT ALWAYS Your Best Option!

Every life insurance owner should have their policies appraised to determine the life settlement value which may greatly exceed the life insurance cash value. A life insurance policy appraisal will provide you with the life settlement value versus the life insurance cash value as well as analyze multiple options on the best utilization of this asset.

To draw upon an analogy, if a house payment becomes unaffordable it doesn’t necessarily mean that you should sell the house without considering all available options (i.e. re-finance the home, trade the home, lease the home etc…) There are two primary types of appraisals:

1. A basic life insurance policy appraisal. This insurance appraisal compares your policy to other comparable polices which have sold in the past 12 months. This method provides a ballpark estimate based on the current market environment
   
   
2. A full comprehensive life settlement appraisal. This insurance appraisal will provide you with at least 6 different options to consider and compare to a life settlement option. It is in your best interests to clearly understand all of them (see below)

A Full Comprehensive Life Settlement Appraisal

This extensive multiple method analysis will provide you with at least six options regarding your policy’s values. You will receive a report that will brake down all possible options into a simple and quantifiable format.

NOTE: Because of the proprietary nature of our valuation methods, we are only going to disclose some of the more commonly used options below however there are additional options explored within the full analysis.

TThe following are just a few of the many options that should be explored (many of which may not be offered by other life settlement companies.)

Receive a lump sum of cash in place of your policy

1. Surrender your policy back to the issuing insurance company for the cash surrender value. In many circumstances an issuing insurance company will provide you with a greater amount of money than the current life settlement value of the policy.
   
   
2. A Life Settlement- Selling the beneficiary and ownership rights of your policy to a third party buyer for a lump sum of cash based on the “willing buyer, willing seller” philosophy.

Keep your coverage and reduce or eliminate your premiums

3. Keep your current policy. You may have the best policy available based on your needs.
   
   
4. Exchange (1035) or transfer your policy’s cash surrender value to subsidize or eliminate the future premiums on a new policy
   
   
5. Sell your current policy for its fair market value and use the life settlement proceeds to subsidize the future premiums on a new policy. With decreasing mortality costs and growing competition between insurance companies, this often allows a client to maintain the same coverage with lower premiums.

Convert your policy to a guaranteed lifetime income stream

6. Sell your current policy for its fair market value and use the life settlement proceeds to purchase a Single Premium Immediate Annuity. In some circumstances, the annuity payout will significantly subsidize the ongoing life insurance premium on a policy with a similar face amount to the original. This could result in much lower on-going premium costs.

Replace your coverage, get a lump sum of cash and finance your future premiums

7. Sell you current policy for its fair market value and deposit the proceeds. Then finance 100% of the on-going premiums of a new life policy. With low interest rates premium financing may be a great option for those seeking insurance with lower out of pocket costs and greater liquidity.

To speak with a specialist today regarding a policy appraisal, please call 888-757-USLS (8757) or click here to submit your information and we will contact you shortly.