Opulen Capital Life Settlement: Creating Value from a Term Life Policy

Term life insurance – that industry staple of the life insurance world, it provides policy holders with a decent death benefit and low premium rates. What it doesn’t provide is longevity. As the policy type suggests, there’s a limit to how long the policy stays in force. For that reason, the cash value is nil and the settlement value just as nonexistent.

But term life insurance policy holders are finding real value in their term life policies through the life settlements market. If you hold a term life insurance policy, especially one that has a conversion option that’s still valid, that policy could be offered for sale in the life settlements market.

How it works is this: life settlement providers can value your term life policy based on its post-conversion value assuming it could/would be converted. If the term life policy (with its assumed conversion value) is deemed viable enough, policy holders can then convert the policy to a universal policy and then settle the converted policy in the life settlement market. Brokers and financial advisors would gather the post-conversion values and submit them to the life settlement providers for their evaluation. The life settlement providers then issue pricing offers based on the conversion value. Once the policy holder agrees to an offer, the term life insurance policy is then converted upon closing of the life settlements deal. The policy holder receives the offered amount and the life settlements provider is now holding a converted universal life insurance policy.

Using the conversion option on your term life insurance policy can open up the life settlements market to you, creating a market value you would not have otherwise had access to. Your proceeds can then be used for any reason, including purchasing a newer life insurance policy – one that may have better coverage terms and more affordable rates.

The conversion of term life insurance to universal life for the sole benefit of entering the life settlements market may not be for everyone. Some term policies may not have a conversion option, or in some cases the policy holder may not be eligible or permitted to purchase new life insurance coverage. And depending on the policy holders’ age, premiums could be well out of reach, making a sale in the life settlements market an impractical option.

Opulen Capital’s mission is to continue to provide the best solutions for our clients through the highest level of integrity and service. The strength of our business is our commitment to improve our client’s financial net worth. For more information on whether your policy qualifies for a life settlement arrangement, contact us at 877-678-5361 or visit http://www.OpulenCapital.com.