In the secondary market, term life insurance can have significant cash value. That’s because there are life settlement brokers like The Ashar Group who can appraise, negotiate and monetize a term life insurance policy by taking into account various age, health, policy values, premium obligations and other factors. Here’s an example:
– A 72-year-old female had a $500K 20-year term insurance policy that was ready to expire – Insurance carrier value to the insured if lapsed was ZERO – She sold her policy on secondary market through The Ashar Group with the help of her advisor and received a lump sum life settlement value of $65K
The truth is, many policyholders can still sell their term insurance on the secondary market. If you are an advisor, make sure your client’s policy is still convertible, and if so, never let them lapse a policy without first checking for hidden value.
If the policy is still convertible, its value is then determined by analyzing a number of factors, including the age and medical condition of the insured, what type of insurance policy it is, the original insurance company’s rating and amount of premium payments necessary to keep the life insurance policy in force.
For a client’s advisor, forming a trusted relationship with a life settlement broker can ensure your client is receiving a thorough valuation, an SMV® or Secondary Market Valuation, before sending the policy to a Life Settlement market. This will help ensure a fair market price.
If you think it would be prudent for your client to consider alternatives like the secondary market, talk to life settlement broker. You can also go to http://www.ashargroup.com/quiz/start/ to take the first steps in determining if a policy may qualify for a life settlement. It only takes a minute, and it could help save your clients thousands.
Reposted with permission from Ashar Group.
On July 13, 2015 / Financial Planning
