5 Things You Didn’t Know About Life Settlements

These are the top five questions people ask us when considering a life settlement.

#1 | Who will buy my policy? Life insurance policies are purchased by entities licensed by the state, called providers. These providers represent a variety of buyers, including institutional capital, family offices, private investors, etc.

#2 | When should I consider a life settlement? A life settlement should be considered if you can no longer afford or need your life insurance policy. It should also be considered if you have a term policy that is convertible, and you do not plan on converting it.

#3 | What if I want to sell my policy, but I also still want/need life insurance? You should consider an option called retained death benefits. Instead of a provider buying the policy for a lump sum of cash today, the buyer takes over premium payments and you retain a percentage of the face value payout. Your beneficiaries will be paid directly from the life insurance company.

#4 | If I decide to pursue a life settlement, can I change my mind? Yes. You can change your mind even after you’ve signed all the paperwork and received your money. Most states have a rescission period of 15 business days from the day you received the proceeds.

#5 | Do I need to have medical issues to qualify for a life settlement? There is a common misconception that a life settlement is only for those who are terminally or chronically ill. This is not true. If you are 65 or older, you may be able to sell you 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.