Life Insurance Settlements - Dallas/Ft. Worth, TX
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Life Insurance Settlements - Dallas/Ft. WorthHow a Life Settlement Works Most people are unaware that 85% of all life insurance policies never pay a death benefit2. A life settlement* is a financial service that allows a policy owner to sell an unneeded or unwanted life insurance policy for cash. Life settlements provide 300% of the cash surrender value on average.1,3 It is always better to evaluate selling your life insurance than to simply let the life insurance policy lapse. If you simply let your life insurance policy lapse, you'll have no chance to receive a return on the years of premiums you've paid into the policy. The average life settlement provides 10-20% of the policy’s face value.1,3 The buyer of the policy takes over the monthly premium, which allows the policyowner to get rid of an ongoing expense. People turn to life settlements for many different reasons:
To get a ballpark idea of what your policy might be worth, try using a life settlement calculator. How are bid amounts determined? Your settlement amount will be determined by the following factors:
Buyers have different needs for their investment portfolios and each has their own interpretation of life expectancy, which is the single biggest factor in determining the settlement offer. To maximize the value for your policy, it's important to choose an experienced life settlement broker with access to a large pool of funders who will compete for your policy. Most life settlement funders will only buy policies through brokers, as they don't have the infrastructure in place to deal directly with consumers. Case Studies Here are some real life examples of people who completed life settlements:
The insured’s adult children were the policy owners and beneficiaries. The premiums on the policy had increased to the point that they were unaffordable, so the adult children sold the policy for over 50% of the policy face amount.
The policy owner’s children were grown and financially stable. The annual premiums were rapidly increasing, so the policy owner sold the policy and used the proceeds to pay down credit card debt.
The policy owner used the proceeds of the settlement to get out of personal bankruptcy and save her house. 1 Data Collection Report 2006, Life Insurance Settlement Association (LISA) Back to the top |