Overview

Overview

Life Settlements Defined

A Life Settlement is the sale of an existing life insurance policy, where the policy owner sales the policy in exchange for a lump-sum cash benefit. Policy ownership is changed and the new owner assumes premium payments and becomes the beneficiary. The sale of an existing Life Insurance policy can provide many benefits to the policy owner.

Policies That Qualify

  • Type: Universal Life, Indexed Universal Life, Whole Life, Convertible Term, and Joint Survivorship Policies

  • Insured Age: Ages 70+ (some younger ages can qualify)

  • Face Amounts: $100,000 – 100,000,000+

  • Health Status: The Insured has experienced a moderate or major change in the health since policy issue

When to Consider Selling a Life Insurance Policy

The economic environment and financial needs of consumers are changing,  people are living longer and the cost of living continues to go up. As a result, insurance policy owners and their financial advisors are taking an increasingly creative approaches to meeting those financial needs. The life insurance settlement market emerged as financial professionals and policy owners began demanding that more options be available for owners looking to surrender or cancel their life insurance policies. Life Settlements have become a vital component of senior financial planning as policy owners turn to Life Settlement Brokers to increase their liquid capital base.

There are a variety of Reasons why Policyowners would want to sell their policy:

  • Premiums become too expensive or unaffordable

  • Insurance is no longer needed

  • Need for emergency funds

  • Mitigate longevity risk

  • Changing estate planning needs

  • Provides capital to purchase a new, more cost efficient life insurance policy, a long-term care policy, or annuity

  • Buy-sell agreements, where the owners have retired or the business has been sold

  • Deferred compensation plans, where the covered executive has left the company

  • Key man policies, where the insured has retired or left the company

Case Example: Male Age 75

The owner of this Universal Life policy could no longer afford his life insurance premium, but wanted to maximize the value of his policy. IMS Settlements was able to shop the market for the absolute best offer and ensure the client was able to obtain valuable funds in exchange for his Life Insurance policy.

  • Face amount: $1,500,000

  • Policy Type: Universal Life

  • Conversion Premium: $52,550

  • Cash Surrender Value: $0.00

  • Life Settlement amount: $365,000

Why Use IMS Associates?

  • Over 50 years of Combined Experience

  • Competitive & Transparent Auction Process

  • Proprietary Policy Pricing Model

  • Life Settlement Training & Education

  • IMS Satisfaction Guarantee