Reasons to Sell
The contemplation of a possible Estate Tax repeal is just one of many reasons why a life insurance policy can become unneeded and a viable candidate for a Life Settlement. Any change in a client’s beneficial interest, income stream or business needs could signal the possibility for a Life Settlement.
Listed below are some of the most popular reasons people pursue the possibility of a Life Settlement
and why financial planners will want to review their client’s insurance portfolio on a regular basis.
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Beneficiaries no longer need the protection. |
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Estate tax liabilities have changed. |
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Loans secured by a policy have been repaid. |
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Key executives retire and no longer need coverage. |
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Businesses are sold or closed so key man coverage is unneeded. |
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Premiums are too expensive. |
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Policy is under performing. |
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Term policy is about to lapse and conversion is too expensive. |
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Long Term care needs to be funded. |
Before a Life Settlement was an option, the owner of an unwanted policy would either surrender the policy for the cash value or allow the policy to lapse. Since 88% of universal life policies never result in a claim, a Life Settlement is a wise alternative for financial planners to look at and consider for their clients.
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