Life
Settlements - Another Option to Consider
Two
options typically exist for a senior having a life insurance policy
that is no longer needed or which they can no long afford to maintain.
Those two options were:
1. Let the life insurance policy lapse; or
2. Cash-in the policy for its surrender value.
Now
with Prosperity Life Inc. and the option of a Life Settlement, seniors
have an opportunity to capitalize on their current life insurance
policy by allowing them to cash in their life insurance in a new way!
Rather than cashing in their policy with their life insurance company,
they can work with Prosperity to cash in their policy with a Life
Settlement Purchaser that will pay more than their insurance company
for the life insurance policy.
Possible
Reasons to Consider a Life Settlement
•
Enhance quality of life |
•
Have excess life insurance |
•
Current policy is underperforming |
•
Other Estate Changes have taken place |
•
Premiums are no longer affordable |
•
Long term care needs to be funded |
•
Beneficiary has passed away and coverage is no longer needed |
•
People are living longer and clients may be able to sell their
policy and acquire a more appropriate product. |
•
Desire to receive more than the Cash Surrender Value offered by
the Insurance Carrier |
•
The money obtained through a life settlement can be used to better
fund other investments, pay bills, vacation, or bequest to beneficiaries
while you are living |
In our
Clients section we will inform you of the type of policies we will
review. Policies purchased by investors generally involve policies
issued on the lives of individuals with life expectancies greater
than 2 years but less than 15 years, due to requirements of potential
purchasers.
General
Market Analysis
(Quebec)
Year
end 2005 |
Total
Amount of Life Insurance Owned |
Number
of Policy Owners |
Average
Amount of Coverage |
Amount
of Individual Coverage |
Amount
of Group Coverage |
Quebec
|
$
617.0 Billion |
5,300,000 |
$
116,300 |
58% |
42%
|
Source:
Facts & Figures: Life and Heath Insurance in Canada. Canadian
Life and Health Insurance Association Inc. 2006 Ed.
Do
you have any contracts that will lapse in the next two (2) years?
FACT:
88% - Percentage of UL policies that never mature in a claim!
Have
you or any of your clients surrendered any policies to the insurance
companies without appraisal for value in the secondary market?
FACT
$ 108 Billion – Total amount of life insurance with market
value exceeding surrender value. Do you really know what the value
is of the life contracts in your current files?
Summary
= All 65 + aged persons should have their life insurance appraised
to determine its market value. This is what Prosperity is here to
assist you with!
FACT:
Policy owners can realize significantly more than the cash surrender
value for unwanted insurance by selling their policies on the secondary
market.
FACT:
Nearly 9 out of 10 UL policies never mature in a claim. Traditionally,
policy owners have had only one buyer – the Life Insurance
Company.
FACT:
The insurance company told you what they were going to pay for the
redemption of that policy.
The
advent of a secondary market has created a free market for life insurance
where insured’s and policy owners can consider competing offers
for their unwanted policies. As a result, consumers now have the power
to capture the value contained in their life insurance policies and
to put that value to the best possible use.