Get the information you need to make an informed decision.
Common Reasons to Pursue a Life Settlement
A life settlement provides seniors with a sensible solution for a policy they may no longer need or can no longer afford. Rather than allowing it to lapse or surrendering it for a cash surrender value, a life settlement offers another alternative:
There are a plethora of motivating factors that encourage seniors to get rid of their policies. The three top reasons are:
- Funds are needed to pay for medical care or some other expense.
- The premiums are no longer affordable.
- Your lifestyle needs have simply changed and the policy is no longer needed.
Defining a Life Settlement
The simplest definition of a life settlement is the sale of an existing life insurance policy to a third party for more than its cash surrender value, but less than its net death benefit. Viatical settlements are another form of life settlements that are primarily for the chronically or terminally ill.
A life settlement or “senior 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. A life settlement 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.
Abacus Life Settlements functions as a provider in the secondary market for life insurance. Abacus provides the policy owner with a lump sum cash payment and takes over future premium payments and receives the death benefit upon the death of the insured.
For more information on the life settlement industry and Abacus, check out our feature in the New York Times.
How Much is My Policy Worth?
This is the most complicated question to answer about life settlements, due to the fact that the pricing process relies on each individual’s health status, age, and policy type. Please contact us to learn more about your policy’s value.
Qualifying for a Settlement
There are certain specifics in an insured’s policy and health status that affect eligibility. The following list serves as a good baseline for your probability of obtaining a substantial settlement.
Abacus Settlements has been known to purchase many different types of policies. In the past, they have dealt with universal, whole, term, and group policies.
Several years ago, Abacus noticed that when clients contacted other settlement companies, they would end up waiting days or even weeks just to receive an estimate. It was, and still is in many cases, typical for other life settlement companies to take months from initial contact to get you paid for your policy.
Abacus thought this needed to change. We know that clients need money now, not 60 days from now. We took the initiative to develop a solution in the form of Abacus Express.
By using this unique process, we are able to qualify your case and generate an estimate within 24 hours. Since we are a direct buyer and provider, there are no middle-men and your line of communication is direct to the party purchasing your policy, Abacus.
At Abacus Life Settlements, our main goal is to be your trusted source of information to help you understand exactly what a life settlement is. We are committed to empowering senior consumers and their financial advisors by offering objective insight to help you make an informed decision regarding your insurance policy.
With Abacus Express, we are able to price policies and distribute funds to clients quickly and efficiently. As a provider, we are a direct buyer. Abacus Life Settlements offers you transparency and confidentiality when it comes to your life settlement. We are here to make sure that you get the payout you deserve from your policy.
Senior care can be a rather large expense for many people, including those who have thorough financial plans. Although Peter had some money stored away, he still needed additional funds to cover the costs involved with long-term care as he recently turned 89 years old. Weary of monthly insurance premiums, he considered letting his $250,000 policy lapse in order to cut costs, instead, he contacted Abacus. We were able to offer Peter $120,000 for his policy; covering his long-term care costs entirely.