7 Important Facts About Life Settlements

Our quick start guide to what you should know about life settlements.

#1 | A life settlement is the sale of an existing life insurance policy to an institutional investor. The investor takes over all the premium payments and the owner receives a cash payment that is higher than the current cash surrender value, but lower than the face amount of the policy.

#2 | Approximately $900 million of face value of life insurance is lapsed or surrendered each year.

#3 | According to Conning, an estimated $180 billion of face terminates irrationally each year, meaning that the policies could have been sold for more than any funds received.

#4 | 90% of those who lapse policies would have considered selling their policy as a life settlement if they had known about it.

#5 | 79% of those same seniors stated that their advisors should have known and advised them about a life settlement option.

#6 | A life settlement can provide immediate cash to pay medical bills, reduce debt, fund a retirement plan, pay for long-term care or even purchase new insurance coverage.

#7 | A life settlement broker—as opposed to a direct provider—can take your policy to a much wider market of potential buyers, some of whom will only transact business through a brokerage. This will bring in the most competitive offers for any policy.

For many policyowners, education is the key to making decisions that will maximize their assets and provide for their financial goals. To learn more about life settlements and how to offer this valuable option to your clients, visit genesislifesettlements.com or email us directly to talk one-on-one with a Genesis advisor.