Most people think of life settlements as a process reserved for individual policy holders and investors. Traditionally, individual policy holders sell their life insurance policy to investors with the help and guidance of life settlement brokers. However, what most people are not aware of is the fact that life settlements can also be extremely beneficial to non-profits and businesses.
It is not uncommon for individuals to donate their life insurance policies to non-profits organizations. Yet, because of high premium payments these thoughtful and generous donations can sometimes be a burden to non-profits. Selling gifted policies can be of great financial benefit to non-profit organizations.
Here at Genesis we work closely with these organizations to evaluate all options and ultimately devise a plan that will be advantageous to all parties involved in the transaction. In addition to assisting non-profits with settlements, we also customize strategies to improve their fundraising efforts by educating and advising potential donors. Individuals who would like to donate to non-profits have two options:
1. Donate the actual policy to the organization and allow the organization to complete the life settlement process.
2. Sell the policy to an investor and donate the proceeds to the non-profit organization.
The life settlement method for businesses tends to operate a little differently than that of non-profit organizations. Businesses and companies who hold policies (usually term policies) on their employees may want to explore the possibility of selling these policies. However since companies usually obtain term policies on employees, it is essential that they be converted in universal life policies before a settlement can occur.
Many businesses make the mistake of allowing term policies to lapse and as a result they unknowingly forfeit what could have been a substantial profit. Our advisors here at Genesis are bountifully equipped with the knowledge and resources to effectively assist businesses and ensure stress-free transactions within the life settlement process.
For more information on life settlements for non-profits and businesses, give us a call today at 1-877-303-9777.