Securing a Better Tomorrow
If you are a high net worth individual, you now have an opportunity to dispose of your life insurance policy for cash while living by selling the policy on the secondary market. The secondary market is comprised of institutional investors who pay a percentage of the face amount upon the exchange of ownership.
The concept is rather straightforward and easy to conceptualize. However, it is a very complex series of transactions that should be handled only by a qualified professional who possesses the resources to properly structure the transaction.
Many components make up a life settlement such as insurance carriers, trusts, attorneys, lending institutions, institutional buyers, and loan & legal documents. Every component plays a crucial role in the establishment and execution that leads to the ultimate success of this remarkable financial transaction.
This transaction appeals to high net worth individuals because they can increase their net worth without risk. Furthermore, having additional life insurance coverage with no out-of-pocket expense prior to the sale has become the most sought after planning technique available today.
Are you a high net worth individual who seeks to improve your financial status with no risk whatsoever?
The following articles may be of assistance in helping you understand this financial opportunity:
New York Times Article
Wall Street Journal Article
The benefits of this highly sophisticated procedure has allowed many high net worth individuals to use the cash proceeds for:
PURCHASING ANOTHER INVESTMENT
PAYING OFF CONSUMER DEBT
FUTURE LONG-TERM CARE EXPENSES
MAKING A CHARITABLE CONTRIBUTION
LIVING LIFE TO THE FULLEST EXTENT
ELIMINATING EXISTING PREMIUMS WHILE STILL MAINTAINING COVERAGE
PURCHASING ADDITIONAL INSURANCE WITH NO PREMIUM OUTLAY
Actual Case Study: Male, age 70
Before Life Settlement
Owned a $4,500,000 term life insurance policy with coverage to age 80.
Annual premium- $35,000
After Life Settlement
Received $639,000 cash setttlement (14.2% of face amount) by selling policy to an institutional investor.
Purchased new term insurance policy with coverage to age 85.
Goals Attained
Increased coverage to age 85.
Received a lump sum of $639,000.
$639,000 settlement will pay the entire annual premium for the next fifteen years on the new policy.
