Life insurance policies build equity every time a premium is paid as more and more money becomes invested in that asset. The policy, and the equity built in it, is personal property, and therefore it can be sold if the owner of that property no longer needs it or believes they can better utilize those dollars. When someone sells all or a portion of their life insurance, they sell it for a lump sum amount more than they would have received if they surrendered it back to the life insurance company (in many cases, four times the amount), but less than the full death benefit amount. This is not a loan, but rather a one-time cash transaction, and the funds belong to the individual who sold their policy. Ownership of the policy, including premium obligations and beneficiary rights, is then transferred to an institutional investment fund, which eventually collects the death benefit.
Abacus Life functions as a leader in this secondary market for life insurance. Our prime mission: work to help you understand your options. If you decide selling all or a portion of your policy is right for you, we can offer to purchase it from you for fair market value. We will provide all the numbers and details to show you how we determined its value and our offer, and if you decide to accept our offer we will provide you a lump sum amount and then take on all future obligations for the policy, including premium payments.