How Can A Life Settlement Unlock Value From My Unwanted Life Insurance?

Over 80% of life insurance policies do not result in a claim. Find out how a life settlement can help unlock hidden value from unwanted policies.

What is a life settlement? A life settlement is the sale of an existing life insurance policy for an amount greater than the carrier would provide the policy owner should they terminate their coverage.

Why would I sell my life insurance?

·      Premiums are no longer affordable

·      Policy is no longer needed

·      There is a need to create liquidity to cover unforeseen expenses

·      Supplement retirement income

·      A business is sold or key employee has retired

Who qualifies for a life settlement?

·      Senior individuals age 65 and above

·      Has experienced a decline in health since the coverage was originated

·      Policies $100k or greater

What can I expect to receive? Proceeds of a life settlement are highly case specific and are based on a number of factors which include:

·      Annual cost to maintain the policy

·      Client’s age and health

·      Type of policy

Is this legal?

·      In 1911, the US Supreme Court ruled in the Grigsby v. Russell decision that life insurance, much life other private property, can be sold.

·      Life settlements transactions are currently regulated in 42, by the individual state’s insurance department

Please feel free to contact Long Lake Planning to determine how a life settlement can help maximize the value of your life insurance.

Is My Employer-Sponsored Life Insurance Enough?

Life insurance is far from a one-size fit all solution, yet many individuals view it as they do the purchase of a new pair of gym socks. A recent conversation with a close friend left me with an uneasy feeling in regards to a belief held by many that their employer-sponsored life insurance is both enough protection, and the most appropriate solution to cover their family in the event of loss.  While a generous addition to an employee’s compensation package, group life insurance policies have significant limitations which need to be better understood by the individual employee and their family to best determine whether or not they need to obtain additional coverage which more accurately reflects their unique goals.  Most group coverage is a temporary form of life insurance. Individuals risk loosing this life insurance and placing their loved ones in jeopardy, should they leave the firm, or have their employment terminated. It is often suggested by advisors, that individuals should obtain life insurance in multiples of their current salary to offset lost income for years to come. While many advisors advocate young families to hold a life insurance multiple of 10X - 20X their current salary in order to properly provide for dependents, the vast majority of employer-sponsored group life policies only cover 1X, 2X, or 3X current salary.  Not only does this represent a huge planning gap which could dramatically impact dependent’s quality of life; major sacrifices will need to be made assuming that lost income is not replaced. The key is to understand your coverage and how it directly impacts the lives of loved ones.