3 Factors That Determine Settlements

Because life insurance is personal property, it can be sold just like any other piece of property you would own. Selling your life insurance policy to a third party gives you more cash versus surrendering it to the insurance company, but this value is less than the death benefit amount. The buyer of the policy takes on all future premiums and then receives the death benefit when you pass away.

You must be 65 or older with a life insurance policy that has a death benefit In order to qualify for a life settlement, one of at least $100,000. Settlement amounts are then determined by these factors:

* The death benefit, which is the amount the buyer will receive when you pass away;

* The amount in annual premiums that the buyer will pay; and

* The number of years the buyer can expect to continue paying the premiums.

A life settlement, on average, earns seniors seven times the amount of the policy’s cash surrender value, LISA says, based on an analysis of a survey by the U.S. Government Accountability Office. In fact, an Insurance Studies Institute survey found that 90 percent of seniors with lapsed policies say they would have considered selling it if they had known life settlement was an option.

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 genesislifesettlements.com or email us directly to talk one-on-one with a Genesis advisor.