• Mark Dierolf

Don't let a life insurance policy go until its value is known

Updated: 3 hours ago

A broker works for you, adds value, and offers you privacy.

You paid for your life insurance policy so it would take care of your family. But you may have to let go someday when:

  • The premiums are too high;

  • The policy is an unnecessary expense; or

  • You need the cash surrender value.

There may be a better way.

When the insured reaches age 60, or any age when there is a chronic illness, a policy may be worth more when sold than its surrender value. Even a term life policy with premiums ready to explode may be sold.

No more worries about premiums when sold. The buyer takes over, paying you cash now, or sharing some of the benefit with your family later.

The sale of a life insurance policy is called a "life settlement," and is regulated by state governments. Sales are handle by agents of buyers, and brokers of policy owners.

Life settlements share much with selling life insurance and real estate. Health underwriting is involved, and policies are listed for sale by the broker or buyer looking for investors.

The value of your policy depends on how much an investor expects to pay to keep it in force: the longer you are expected to live, the less a buyer will pay for your policy.

The costs of a life settlement are you may never be able to buy life insurance again, and you lose privacy because the buyer's agent will be checking on you for the rest of your life. It's important to receive enough value to make these costs worthwhile.

Greed cost you money. Policy owners often think they can make more money by having more than one broker or going direct to buyers. Wrong.

You have one chance to prepare a listing and can lose a lot of money if you get it wrong. Brokers have tools not available to the general public so you can't afford to go into this alone.

Buyers serve their investors and don't have to be fair to you. A buyer who is losing a deal may want to talk with you instead of going through your broker, but your broker can't protect your policy's value if you do or go elsewhere.

Brokers are not all the same. Some just list the policy. A life settlement usually happens once in a lifetime. A broker who offers other services is more likely to find you more money.

My services include:

  • Reviewing your policy to learn its value with privacy. There is no need for a buyer to know who you are until you are ready to sell.

  • Finding an alternative to a sale like a family member to take over.

  • Learning if you may qualify to buy life insurance after a settlement.

It's not too late for a broker to help if your policy is already listed. A broker may be able to salvage any damage and find you more money if you are committed.

Remember, a broker offers you privacy, adds value, and saves you time with no worries. There's no charge for a review and no obligation to sell.

Call today: (831) 753-0507 or CLICK HERE

Don't let a policy go until its value is known.

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