How to Handle Rising Premiums

In past years, the premiums shown to a customer when they were sold a policy would stay the same while the policy was in force because insurance companies wanted their confidence. This was a point of pride for the insurance company and this basic promise between the insurer and consumer promoted life insurance products as staples in the financial plans of American families.

Now we see a number of insurance companies are breaking that basic promise, unfortunately. After years of low interest rates that have put a pinch in their quarterly profits, carriers have tried to make up for the drop in interest income by increasing their policy owners premiums and for seniors living on fixed incomes or retirement funds already under stress, these premium spikes can become altogether too much to endure.

In this case, Insurance companies notify policyholders that they have three options:

  1. Pay higher premiums in order to keep their existing death benefit
  2. Maintain the same premiums but sacrifice some of their death benefit on the policy
  3. Surrender the policy back to the insurance company for its cash value

But if you are one of the American seniors facing an increase in your life insurance premiums, there may be another option for you that the insurance company is not sharing with you.

You can consider selling the life insurance policy to a third-party investor for immediate cash payment, known as a life settlement transaction. If you are 70 or older with a life insurance policy that has a death benefit of more than $100,000 then you are a typical candidate for this settlement. Selling this policy can actually bring you four to seven times more money than the cash surrender value of your policy, not to mention the removal of a massive burden of dealing with rising premiums.

For many policy-owners, 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 or email us directly to talk one-on-one with a Genesis advisor.