• Mark Dierolf

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

Updated: Jul 20

Bill was close to retirement age and wanted to increase his savings and reduce costs. He had 2 life insurance policies: one with no cash-in value and the other with some.

Before letting the policies go, Bill asked a broker what a settlement would offer. The broker found buyers for both policies, each offering more than the insurance company.

Bill could now enjoy payments for the policies, and keep some of the benefit.

People often cash-in their life insurance policy, or give it up for nothing at all, without knowing they would have been better off listing their policy for sale.

When the insured reaches age 60, or any age when there is a chronic illness, a life insurance benefit that is no longer needed may be sold for more than it's worth to the insurer. Even a term life policy may be sold.

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

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

Policy owners are often forced to sell when not ready because of:

  • High premiums;

  • A divorce or separation;

  • An estate sale of the policy;

  • Policy can no longer pay for itself; or

  • Cash is needed more than the benefit.

But a policy should be sold when:

  • The purpose has ended;

  • There's no beneficiary for the benefit; or

  • Some or all of the benefit is not needed.

Policyowners often hold on to their policies too long which cost them lost value in the long run.

The value of your policy depends on how much an investor expects to pay to keep it in force: the higher the premiums and longer the insured is expected to live, the less a buyer will give.

Buyers prefer policies when the insured's life expectancy is 15 years or less, but they may still buy when it's a good investment.

Most policies can be sold by a broker, it doesn't matter who the insurer is or agent who sold it. Even a term policies may be sold, and is just a valuable as a permanent policy when convertible.

My services are as a broker for policyowners and include:

  • Reviewing your policy from any insurer or agent to learn its current and future value.

  • Fixing problems that can affect your policy's value.

  • Helping you after a settlement to find new insurance or grow a benefit from your payment.

A broker works for you, adds value, and can offer you privacy before you list your policy. Buyers don't have to be fair to you because they work for their investors. This is why you need a broker to help you.

Now is the best time to review your policy. A policy review protects you, your policy and it's free. Don't wait for a crisis.

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

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

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