As we begin the year 2024, the landscape of life settlements unveils compelling statistics that shed light on the often-overlooked potential of life insurance policies. These facts not only underscore the financial benefits that policyholders may be missing out on but also point towards a promising year ahead for those considering the sale of their life insurance.
Over the past few years, we have witnessed unprecedented economic challenges that have left many individuals reevaluating their financial portfolios. The persistent fluctuations in interest rates and the rising cost of insurance have prompted policyholders to seek alternatives that provide stability and financial relief.
Despite the evident financial advantages, an alarming $200 billion worth of life insurance is projected to be surrendered or lapsed annually through 2027. This trend suggests a significant gap in awareness, as policyholders may not be aware that selling their policy is a viable and more profitable option.
A life settlement can be the key to unlocking value from an existing life insurance policy. Policyholders, particularly seniors, who find themselves unable to afford escalating premiums or those with a diminished need for the coverage, can leverage life settlements to secure a cash payout. This payout not only addresses immediate financial concerns but also provides a way to optimize the value of an asset that might otherwise go underutilized.
At Abacus Life, we have had the privilege of witnessing firsthand the positive impact life settlements can have on individuals facing financial hardships. Consider the case of a 69-year-old male with a $1,000,000 Universal Life policy. Burdened by growing policy loans and contemplating lapsing the policy to pay off debts, Abacus was able to step in. We paid off all outstanding loans, provided a life settlement of $150,000, and saved the client an additional $21,000 in annual interest. This success story highlights the tangible benefits of life settlements in addressing complex financial situations.
According to LISA.org, life settlements yield an average of four times more than the cash surrender value. This substantial increase in proceeds positions life settlements as a lucrative option for policyholders seeking to unlock the hidden potential within their policies.
As we move further into 2024, Abacus Life remains committed to being your reliable life settlement back office. Our streamlined process requires only an in-force illustration for our expert analysts to provide a comprehensive appraisal. We understand the nuances of the industry and strive to make life settlements a straightforward and beneficial option for both policyholders and agents alike.
For seniors who can no longer afford their insurance premiums, are considering lapsing their policies, or no longer have a need for insurance, please call Abacus Life at 800-561-4148. Our team is dedicated to providing personalized solutions that empower individuals to face the future with financial confidence.