Would you ever buy a house if you could only sell it back to the real estate company that sold it to you? Would you ever buy a house if you could only sell it back to that company at a price set by that company? No! Of course, you wouldn’t! Neither would your clients.
However, that is exactly what your clients settle for when it comes to surrendering their life insurance policies. When cashing in on policies that are no longer needed or no longer affordable, most people mistakenly believe that their only option is to accept the net cash surrender value dictated by their life insurance carrier. The good news is that your clients have another option, a Senior Life Settlement.
When you (or a previous advisor) originally sold your client his or her life insurance policy you (or that advisor) did a great job of selling your client on the fact that LIFE INSURANCE IS AN ASSET! Merriam Webster defines an asset as “An item of value owned.” Just what is the tangible value of a life insurance policy? For insureds without advisors in the know, that tangible value is the net cash surrender value dictated by their life insurance carrier. Advisors in the know realize that the Senior Life Settlement secondary market is a regulated market where policy sellers receive bids from multiple parties to buy their policy at a rate greater than the carriers’ surrender offer.
Senior Life Settlements provide a win-win for both the policy seller and the policy buyer. The policy seller receives an amount greater than he or she could ever receive through a cash surrender to the life insurance carrier. The policy buyer receives an absolute return in that he or she knows exactly how much he or she will receive in the future. That return will be the exact face amount/death benefit of the life insurance policy purchased.
Just as your clients are not restricted to selling their houses back to their original real estate companies, they are not restricted to surrendering their policies back to their original life insurance companies. Just as your clients are not restricted to selling their houses at prices that their real estate companies dictate, they are not restricted to surrendering their policies back to their life insurance companies at a price those companies dictate. Your clients are free to engage in Senior Life Settlements in order to obtain larger amounts of cash for those policies.
For more information on Senior Life Settlements and how they provide more options for your clients, call West Coast Settlements at (657) 254-4300 or send an email to email@example.com.