For many who choose to opt for a life settlement, selling the entire policy makes sense. When your client simply doesn’t have a need for the policy anymore, or it just doesn’t make sense to keep paying the premium, a life settlement is the perfect option. But what about someone who wants to retain part of their policy?
For those who want to downsize their policy to keep them from paying the full premium, or make sure their heirs receive part of the death benefit, seniors can sell a portion of a life insurance policy in a life settlement, while maintaining the rest. Here are some of the top reasons a client may choose to surrender a portion of a life insurance policy:
- Eliminate or lower unaffordable premium payments.
- Use the money saved to purchase a more applicable policy.
- Invest in other assets.
- Improve quality of life.
- Create cash from a dormant asset.
This option allows the insured to have extra money for whatever life is throwing at them, from medical bills to a luxury vacation, yet allows the insured to maintain enough of the policy to meet the needs that required the policy to be purchased in the first place.
Even though the life settlement market has existed for over 20 years, there are still many options it can provide that simply aren’t acknowledged by insurance companies. The fact is that seniors can get cash for their life insurance policies when they need it.