A life settlement transaction is the sale by the owner of a life insurance policy to a third party for an amount greater than its cash surrender value and less than the death benefit. The seller of the policy receives a cash payment; the buyer of the policy assumes all future payments and receives the death benefit upon the passing of the insured.
Should I Sell My Policy?Millions of seniors are nervous about their retirement years and are searching for additional financial security to help them pay medical expenses, rid themselves of debt or just enjoy their golden years. For those folks, a life settlement is an important option to consider as an alternative to lapsing or surrendering a life insurance policy.
The Insurance Studies Institute found that 90 percent of seniors who have lapsed a policy would have considered selling it if they had known a life settlement was an option.
Do I Qualify For A Life Settlement?Many people are curious as to whether they qualify for a life settlement with their existing policy. There are two major qualifications:
1. Your policy must have been in force for at least two years.
2. You have a life expectancy of 15 years or less.
If both of these are true, then you may have an excellent chance that buyers will be interested in purchasing your policy. Other factors may come into play, like the type of policy you have, certain health factors, etc. A life settlement is not for everyone, but it might be right for you!
What Is My Policy Worth?The truth is, your policy is worth what a financial institution is willing to pay for it. To get you the best offer, a licensed broker will create an auction and allow all of the interested licensed buyers to bid against each other for your settlement offer. This insures that you get top dollar for your policy.
Is a Life Settlement Right for Me?Before deciding to pursue a life settlement offer, a policy owner should seek both legal and tax advice from an attorney such as myself and a certified public accountant. Tax consequences of life settlements are quite favorable, and often little or no income tax is due on the amount received. However, the opinions of trusted legal and financial professionals are important to be sure the transaction is in the best interests you as the policy owner and the policy's beneficiaries.
To begin the process in Virginia and in most states, it is necessary to involve the services and expertise of someone who is licensed to broker life settlement transactions. A competent licensed broker will also solicit bids from every buyer licensed to operate in your state, and will keep the seller advised with regard to all offers to purchase that are received. We want to invite you to attend our FREE webinar hosted by myself and trusted Financial Service Professional Dick Nottingham.
Discover the hidden value you may have in one of your seemingly intangible assets - your life insurance policy! If you no longer need your life insurance policy or decide you no longer want to make the premium payments, then learning about life settlements may be for you.
This presentation will inform you of some options available to you and walk you through the process of a life settlement, which may put many thousands of extra dollars in your hands; dollars that can help you better afford long term care expenses, pay off debts, benefit heirs, or simply fund some of your "bucket list" items. Register online at www.alperinlaw.com or by calling our office at 757-490-3500
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If you need to speak with an experienced estate planning lawyer please contact us online or call our Virginia Beach office directly at 757.490.3500 to schedule your free consultation. We have offices throughout Virginia including Chesapeake, Newport News, Norfolk and Suffolk.