As people age, many find that they no longer need their sizable life insurance policies. At BB&G, we provide the resources financial professionals need to market and sell these policies and secure the best possible return for clients.
About the Life Settlements Market
Would you have bought your house if you were only allowed to sell it back to the initial builder? Would you part with valuable artwork, jewelry or other assets before having them appraised to determine value? By the same token, would you advise your clients to sell their house or valuables without them knowing what the fair market price was?
For years, people assumed that life insurance that was no longer needed, wanted or affordable could only be lapsed or surrendered for the value the insurance companies determined it to be worth. However, when the proper arbitrage exists, policy owners may find their policy to be worth significantly more than a lapse/surrender would provide.
Life settlements can help unlock that hidden value and provide your clients with options, control and flexibility that previously was unavailable to them.
Consider this recent case where a life settlement provided the best possible solution for a family with financial constraints:
The family, whose father was in declining health, had been paying about $100,000 per year to provide him with proper medical care. At the same time, they were making premium payments on his $1,750,000 life insurance policy that also totaled close to $100,000 annually. With the high costs for both the insurance coverage and the health care being more than the family could handle, they were on the verge of lapsing the insurance coverage to focus on the health care costs. Thankfully, their agent had suggested the option of policy appraisal which resulted in a gross pay out to the family of $730,000, a windfall above the $200.00 of cash value in the policy.