Due to the fact that the life settlement industry is still a fairly new business practice—only having gained its beginning in the 1980s—the concept of selling your life insurance policy may still seem foreign. For over 30 years, the selling of life insurance policies through life settlement brokers has been proven to be a viable option for those who no longer want, need, or can afford to maintain their life insurance policies. Here are several tips deemed helpful for someone who is considering going through the life settlement process.
1. Evaluate Your Needs. Do you need this policy? Is the policy at risk of lapsing? Is there a new or more economical policy available? Are the premiums becoming too expensive? Is the policy simply no longer wanted?
2. Do Your Research. After you have evaluated your needs and decided that the life settlement option might work for you, it is time to start doing some research. The first things you may want to research are the eligibility requirements, as they can sometimes vary by state. As an independent life settlement brokerage firm, Genesis Asset Advisors has a list of criteria that are typically looked for in cases of individuals who are seeking to sell their life insurance policies.
•Is the insured 65 years of age or older?
•Is the policy a Term, Whole life or Universal Life policy?
•Is the face amount over $100,000?
•Is the policy is no longer needed, wanted or affordable?
•Is the policy ready to be surrendered or lapsed?
•Is it a term policy that will not be converted into a permanent policy by the owner?
•Has the policy has been in force for at least 2 years?
Although the items listed are ideal factors for life settlement candidates, it is important to note that they simply act as a basic parameter and that each case is evaluated individually.
Other helpful research may include finding a trustworthy life settlement brokerage firm. Choosing the right broker can save you time, money, and stress. A life settlement broker’s role is to sit down with individuals and help them to gain an understanding of the life settlement industry and all of its components. In addition, life settlement brokers represent the policy holder during the entire sale of the life insurance policy and the process thereafter.
Doing your research to find a trustworthy life settlement broker will help ensure the best outcome in the selling of your life insurance policy. Top-notch brokers not only help to procure the best deal at the close of the transaction, but they will also make sure that the entire process is stress-free and effortless for all parties involved.
3. Weigh the Various Options. Selling your life insurance policy isn’t a cookie-cutter process. Most often, the outcome of a life settlement is based on the specifics of the case. In other words, there is not one standard option for selling your life insurance policy, but rather a few. The most common life settlement option involves selling the entire life insurance policy for an amount that is most often greater than the cash surrender value. Another life settlement option is selling a portion of the life insurance policy and maintaining a portion to leave for your loved ones.
Ultimately, choosing to sell your life insurance policy is a decision that should not be taken lightly. In order to produce a favorable outcome, it is important that you follow the tips listed above. For more information on life settlements and the Genesis Experience , call us today at 877-303-9777.