3 Best Life Settlement Strategies in Florida
A life settlement is an opportunity for a policyowner to sell an unneeded life insurance policy for more than the policy’s cash surrender value and less than its face value.
Sellers of their life insurance policies typically have a shortened life expectancy but are not terminally ill.
The purchaser of the policy pays all future premiums and collects the death benefits (this is also referred to as the face value) upon maturity.
In other words, the policy buyer becomes the beneficiary of the policy.
A life settlement differs slightly from the related viatical settlement, in which the seller of the policy is terminally ill and has a defined life expectancy, typically less than two years.
Life settlements are also referred to as senior settlements.
But life settlements can represent much more than an exit strategy for unneeded life insurance policies.
With the assistance of an experienced advisor, a life settlement can be a springboard to achieving a policyowner’s broader financial objectives.
- Recouping term premiums – a policyowner who no longer needs a term policy can use a life settlement to eliminate future premiums and recoup a portion of their overall premium outlay.
- Restructuring cash flow – a policyowner with limited cash flow can use the proceeds from a life settlement to fund immediate needs while eliminating future premium payments.
- Retained death benefit – a policyowner can choose to retain a portion of the coverage while eliminating future premium obligations.
Are you a candidate for a Life Settlement?
Life settlement candidates are insureds age 65 and over with:
a life insurance policy face amount of at least $100,000; and a life expectancy up to 20 years.
- Common scenarios leading to a life settlement include any number of situations in which a policy is no longer meeting the policyowner’s needs, such as:
- the insured has outlived the need for the policy;
- a change to the overall financial plan;
- the end of the term conversion period is approaching;
- an increase in premiums due to a rising cost of insurance;
- a business partnership has dissolved;
- a key employee has retired and the coverage is no longer needed;
- “vanishing” premiums have not vanished;
- the owner wants to move the policy’s market value into another asset or buy a more efficient insurance policy;
- reduction in the value of an estate or business;
- retirement or sale of a business;
- or a change in marital status.
How to Apply for Life Settlement in Florida
The vast majority of people interested in life settlements use the service of a broker.
Brokers provide two major advantages over attempting to sell a life insurance policy oneself.
They manage what is a complicated process and they take the policy to multiple companies, get multiple, competing offers and therefore can receive higher bids than individuals attempting to sell a policy themselves.
It is generally accepted that using a broker pays for itself, but there are always contrarian opinions.
Without question, brokers make the process considerably easier and for that reason alone they are recommended.
Initiating a conversation with a broker is highly informative, free of charge and puts an individual under no obligation.
Mintco Financial Life Settlement in Florida
When you consider any option that touches your life and the lives of those you love, it’s important to work with a trusted professional.
We encourage you to review our site and call one of our licensed brokers about this important resource at 813-964-7100.
The process is easy; there are no application fees, invasive interviews or physical examinations.
Call us at 813-964-7100
Email us at email@example.com