Every year, more than 710,000 life insurance policies are surrendered by seniors older than 70. Many due to the fact that seniors think this is their only option. If you combined the face value of these policies, they would amount to over $57 billion. Here are 5 alternatives that are more beneficial than just surrendering the policy.
- Maintain the policy through loans against its current value
- Seek an accelerated death benefit to allow you to take some cash out now
- The policy may be convertible into a long-term care health insurance policy, or if it’s a term policy you might be able to convert it into permanent life insurance
- Make the policy more affordable by reducing the death benefit to a lower face value to lower the premiums
- Assign the policy to an individual or a non-profit organization as a gift
Another important option to consider before lapsing or surrendering the policy — one that can actually put the most amount of cash directly into your pocket — is to sell it through a life settlement transaction.
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.