The Value of Life Settlements
Depending on who's talking, seniors are getting mixed messages regarding life settlements and their value in the market. Seniors hear everything from how life settlements are valuable resources to how it's no more than betting on death. So which is it?
Obviously, life settlements are a legitimate market in which seniors and other policy holders can find financial benefits. The business, which is regulated, is seeing large corporations investing, which in turn is creating a genuine value that policy holders can cash in on.
And if you're a policy holder of life insurance that no longer fits the purpose you bought it for or is otherwise unwanted, your options could include life settlements. Consider this:
- Life settlement markets pay well. If you surrendered your life insurance policy to your insurance company, the surrender value will almost always be lower than the payout you can attain through a life settlement sale. Often, life settlement payouts are twice that of the policy's surrender value.
- A life settlement could deliver a cash value you need now, not something you intend to pass on to heirs. Sometimes the reasons you bought life insurance no longer exist. The policy is not needed, your heirs are no longer living, or any number of reasons could render that policy useless under your original intent. Also, you could experience medical expenses, financial restraints, or unexpected expenses that threaten your financial safety. A life settlement arrangement could net you the necessary cash to pay for unforeseen bills.
- Life settlement arrangements eliminate costly premiums. Because you're selling your life insurance policy, you are no longer responsible for the premiums on the policy. The buyers of your policy are. If you've been paying high policy premiums, this could amount to a significant savings, freeing up even more of your money.
- Selling a policy to a life settlement market is better than letting the policy lapse. If your policy lapses, you lose all money you've invested in it to date. That means all the premiums and all the cash value is gone. Moreover, you're now without any death benefit coverage. It's never a good idea to let a policy lapse. Instead, consider selling a policy you may not be able to afford otherwise in a life settlement agreement.
- Your privacy is guaranteed. Life settlements are pools of insurance policies in which the personal information of the policies' named insureds are kept hidden. Investors do not know whose policy is being purchased – only that a male/female of a certain age and insured class is insured for the stated policy death benefit. Also, life insurance policies are not sold to investors one at a time, so there's even less chance your personal information will make it into the hands of the investors.
- Life settlement money comes with no limits on use. If you want to fund your trip to Europe by selling your life insurance policy in a life settlements deal, you're able to. Life settlement arrangements have no requirements on how the money you receive can be spent.
Opulen Capital is also one of the leading firms offering Life Settlement opportunities for high net worth clientele. Through exclusive relationships in the life settlement marketplace, Opulen Capital uses our expertise to structure, obtain, and sell life insurance products to maximize cash profits for our valued clients. Email us or call 877-678-5361.
