WHO BUYS LIFE INSURANCE POLICIES
Anyone who owns a life insurance policy and is considering the option of selling it, is curious to know who buys life insurance policies. The short answer to this question is that there a number of investment fund companies that purchase life insurance policies as an alternative investment to being invested in the stock market. These investment fund companies are represented by Life Settlement providers, including Coventry Direct, which negotiate life insurance policies on behalf of the investor. It's a life settlement broker's job to represent the client in a transaction, and they will shop your policy around to nearly 30 life settlement providers, so this will often yield higher offers. Policy owners can go direct to a life settlement provider, such as Coventry Direct, and cut out the middle man, but it's advised that they should consider more than 1 offer. Life Settlement Option can help bring multiple offers to the table and we're happy to compete with the offers you receive on your own.
If you're just getting started, the term for selling a life insurance policy is called a Life Settlement or Viatical Settlement. In any life insurance policy there are three parties involved: the Insured, the Policy Owner, and the Beneficiary. Often times the Insured and the Policy Owner are the same person, but since 1911 the U.S. Supreme Court passed a law that allowed for the transfer of ownership of a policy to a 3rd party. In other words if you are the policy owner, you can sell the policy to another entity for a lump sum of money that is greater than the cash surrender value and less than the death benefit. This new policy owner then changes the beneficiary to themselves, and continues making the premium payments until they're able to collect the death benefit.
Getting back to the question - who buys life insurance policies, imagine the variety of investment strategies there are among the many investment fund companies. One investor may only be interested in short life expectancy cases while another may specialize in cancer diagnosis. One may only purchase policies for folks that are above a certain age while others are heavy in short life expectancy policies are are more open to younger candidates to diversify their portfolio. When you work with one life settlement provider, they may be representing a few investment companies, but you may find that none of those investors are particularly interested in your case, but there are several out there that are. That's where working with a broker is going to help you get more money in your settlement. They know what a policy's potential is, and if they can squeeze a little bit more out of the offers. If you can get a better offer from a life settlement provide yourself, you can and should take it, but a broker is likely to get you a better offer for your life insurance policy the majority of time.
Life Settlement Option has a team of experts with over 15 years experience that are focused entirely on appraising, preparing, and presenting life settlement opportunities to as many buyers as we can with the intention of finding the highest bidder. Once bids for your policy are in, you can choose to accept or forgo the offer.
A Life Settlement may or may not be the best option for you, so it's best to have your case reviewed and your options considered. Many folks have paid into an insurance policy for many years, and have lived longer than expected. It's becoming difficult on their budget to continue paying these premiums, so rather than let the policy lapse and have all those years of premiums go to nothing, a life settlement is a fine option that allows you to collect some of the value of your policy while getting rid of those expensive premium payments.
A life insurance policy is considered personal property, and can be sold just as real estate can be sold. The process takes some time, and also will depend on how motivated you are to get an offer. Once an agreement is made, the deal goes into escrow before final payments are made.
If you want to avoid paying future premium payments, get started today. Send us an email with your details, or use our life settlement calculator to start an informal appraisal. We look forward to providing your life settlement option soon.