Life insurance policies are typically your client’s largest assets. It is your client’s right to sell their life insurance policy if they reach a point where their current policy is about to lapse, has become too expensive and burdensome with premium payments, or is no longer needed due to changes in personal or financial circumstances. Your clients can sell it for a cash payout that is significantly higher than the cash surrender value their insurance company would pay them. You should never let your client lapse a policy which results in getting nothing in return. They should also never take less money from the insurance company in comparison to what they can get through selling their policy for cash.

The majority of representatives are missing out on this easy opportunity to bring unique value and show innovative practices to support their clients. They are also missing out on the opportunity to develop new and potentially significant revenue streams for their business. Adding life settlements to your practice can be a great economic decision for you and your client.

Sell A Life Insurance Policy (SALIP) provides our clients with many competitive advantages. The main benefits to using SALIP in order to position your client’s policy for success are:

• Free evaluations
• Transparent process without misleading valuations
• More money for you and your client
• Better client service and turnaround times
• Enhanced modeling and ability to uncover extra value compared to competitors
• Efficient process

While life insurance is an important security feature for certain periods of a person’s life, there may come a time when it is no longer needed. In circumstances like the following, life settlements might make sense for your client:

• They are considering lapsing a policy.
• They want to cash out a policy to enjoy life with their family now.
• They no longer need a policy to support their family if they pass away.
• They have no viable beneficiaries for their policy.
  
• Premiums are too expensive and they can no longer afford their policy.
  
• They have immediate cash needs for a life event.
  
• Estate liquidity needs are less.
  
• They need money to fund health care or assisted living costs.
  
• They want to take advantage of a convertible term option.

“The ability to sell their policies as a life settlement enabled policy owners to receive an amount more than four times greater than what they would have received had they surrendered their policies to their insurance companies.” – London Business School Study, June 2013.

Eligibility is affected by many factors, but these attributes will increase the chance of selling your life insurance policy through a life settlement or a viatical settlement:

Life Settlement:

• Age: 65 and older (younger insureds with more significant health issues may also qualify).
• Health: Have had a change in health since the policy was issued.
• Policy Type: All types of permanent life insurance, including: Universal Life, Whole Life and Convertible Term.
• Face Amount: $100,000 and up.

Viatical Settlement:

• Age: Any age.
• Health: Must have a life threatening or chronic disease that will result in a contracted life expectancy.
• Policy Type: All types of life insurance, including: Universal Life, Whole Life, Term Life and Convertible Term.
• Face Amount: $100,000 and up.