What is a Life Settlement?
A life settlement is a financial transaction where the owner of an unwanted life insurance policy transfers ownership and beneficiary rights to an institutional investment fund. In exchange for transferring ownership, the insured receives a cash settlement that can often be four times greater than the cash surrender value. This is not a loan, it is a one-time cash transaction that results in a full transfer of ownership in exchange for a lump sum. The money belongs entirely to the policy seller and can be spent at his or her discretion
Why Life Settlements?
Individuals look into the life settlement market for a variety of reasons, but the core of every discussion is finding value in an asset that typically goes unnoticed as they age. Policies are often just another bill coming out until they become a strain on retirement budgets. Approximately 90% of all life insurance lapses, effectively returning billions of dollars annually in value and personal property to life insurance companies, with no benefit to the insured. At Abacus Life, our aim is to change that, we help individuals take the value that they are owed, that they earned and built over decades.
Selling your life insurance policy provides you with a sensible solution to find value in an asset you may no longer need, or can no longer afford. Rather than allowing your policy to lapse, or surrendering it for a cash surrender value that is well below your policies true value; selling your policy offers a viable, safe alternative.
Can I Sell My Life Insurance Policy?
One of the most common questions we are asked is, “Who Qualifies For a Life Settlement?”. While there are some tested and true parameters for the settlement market, we reccomend anyone that may be curious fills out our Life Settlement Calculator. There are a variety of ways you can qualify for a settlement, and every client is different. We commonly purchase policies from individuals significantly younger than 72 based on health and policy factors. That being said, our typical client is over the age of 72 with at least $50,000 in life insurance coverage of any type, including term policies.
How Does Selling my Policy Work?
The life settlement market has historically been cumbersome and complicated, the barriers to entry for a normal person were often too great. It has been Abacus Lifes goal for the past several years to make settlements simple, and we are proud to be the largest direct purchaser in the industry due to that focus on our clients. We got rid of all the red tape, and boiled the life settlement process down to a few simple steps.