If you own a life insurance policy, you now have an opportunity to dispose of your life insurance policy by selling the policy on the secondary market. The secondary market is comprised of institutional investors such as banks or financial institutions, 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.  

There are many components that make up a life settlement such as institutional buyers, lending institutions, attorneys, and insurance carriers.  Every component plays a crucial role in the establishment and execution of this financial transaction.

The following articles may be of assistance in helping you understand this financial opportunity:


                New York Times Article

                Wall Street Journal Article

• Charitable contributions

• Funding an annuity

• Future long-term care expenses

• Paying off debt

• Eliminating existing premiums

• Living life to the fullest extent

                                                        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.