Life Settlements Made a $654 Million Difference

Sadly, there are thousands of policies that are never evaluated for their life settlement value.

Billions of dollars of policy owner value is likely being left on the table.

Recent Policy Sales

Consider these recent cases that might have lost out:

Rather than surrendering a $1,500,000 universal life policy and getting $65,234, one policyowner settled a policy and netted $275,000 — over 4 times as much.
A $500,000 term policy was going to lapse without any value. Instead, the policyowner settled it and got $20,000. That’s $20,000 vs. $0.

Communicate

While the 2021 figures show strong growth of life settlements, the amount of money lost on policies that are lapsed or surrendered without review continues to be staggering.

As a trusted advisor, it is your obligation to make sure your clients are aware of the life settlement option.

Remember, a life settlement is an alternative to lapse or surrender.

Once the decision has been made to lapse or surrender a policy, don’t let your clients fall into the statistic of policies that are terminated without being evaluated for additional money from the life settlement market.

It can’t hurt to try. It can only hurt not to.

Robin S. Weinberger, CLU, ChFC, CLTC, is the director of national accounts for Life Insurance Settlements Inc. She has been a general agent and director of national accounts for Connecticut Mutual and vice president of marketing for Sun Life of Canada. She can be reached at [email protected] or (617) 451-3343.

Peter N. Katz, JD, CLU, ChFC, RICP, is a life settlement broker and co-director of national accounts with Life Insurance Settlements. He is also a consultant specializing in life insurance advanced sales illustrations, and he has served as an advanced markets attorney and in product development. He can be reached at [email protected] or (860) 937-2936.

(Image: Shutterstock)