life settlements

Since the early 1990’s a boutique insurance industry has flourished that allows obsolete insurance policies to be purchased by entities apart from the issuing insurance companies. Because many insurance companies have recently demutualized and/or because crediting rates in existing insurance policies have fallen so dramatically that policies are imploding. It is prudent to determine the vitality of an individual’s policies as well as the ability of each individual’s policy to perform as desired as its implementation.

There are a variety of reasons that a client’s insurance policy might no longer need to exist such as: having a business sold, an executive retires from a company, or a buy/sell agreement is no longer needed, or the premiums are too expensive or family issues such as divorce, etc. have occurred or an estate value has significantly changed. Under these and many other circumstances the insurance purposes may have changed from what they were upon origination. In this situation evaluating a life settlement is most prudent because life settlement companies will often purchase the policy for significantly more money than the underwriting insurance company will pay through a non-forfeiture option. Policy amount, age, and the insured’s health status are significant factors considered in this process.