A life settlement is the sale of an existing life insurance policy to a third party for a value mutually agreed upon by the seller and the buyer. At Life Insurance Nerds, we manage the entire process, including the transparent auction process.
• Americans lapse their existing policies at the rate of 4% to 5% per year
• $200 Billion a year of life insurance goes uncollected
• 90% of seniors who lapsed or surrendered their policy say they would have considered selling if they were made aware of the possibility
Settlements provide cash alternative for clients that no longer need or want existing policies. The proceeds can be used for long term care, health care costs, premium recovery or other current needs.
• More than 85% of all universal life policies never result in a death claim.
• More than 20% of insureds age 65 and over own a life insurance policy with a market value greater than the one described in the contract.
• Has children that are grown, who no longer need a death benefit.
• Is retired and no longer needs income replacement.
• Can no longer afford their premiums.
• Needs have changed from fear of dying too soon to living too long