What is Your Most Valuable Asset?

By definition, an asset is considered something that provides a current, future, or potential economic benefit for an individual or other entity. Many individuals tend to associate the concept of an “asset” with their house or car, overlooking one major asset that is typically one’s most valuable, their life insurance policy.

Financial assets are designed to appreciate and gain value as time passes. Because a life insurance policy can build cash value or be converted into cash, it is also considered a financial asset when calculating one’s net worth. With this being said, when utilized wisely, a life insurance policy is an extremely valuable, and often overlooked, financial asset.

Now raises the question, how do I best utilize this asset?

Depending on your current situation, you may be eligible to liquidate this asset to provide you and your family with immediate cash that can be utilized in whatever fashion best suits your needs. Many individuals assume that they need to wait, or have their family wait, to capitalize on their policy, even though the reality is that they can benefit from it during the life of the insured. If you are age 70 or older, own a policy with a death benefit of $100,000 or greater, or have a recent decline in health, you could qualify for a life settlement. These are considered general guidelines, so it is always recommended to reach out to an Abacus Life representative to discuss your qualification and input your information into our Life Settlement Calculator here.

At Abacus Life, all we need in order to best secure a market value range/preliminary offer is an in-force illustration, the insured’s medical history, and any type of medical record, if available. According to the industry publication, The Deal, which produces an annual Life Settlement Report compiled from state DOI statistics, Abacus Life pays the most — ranking #1 in provider payouts for 2024. In fact, since 2017, we’ve paid $1.2 billion to policyholders, helping clients unlock meaningful value from policies they may have otherwise surrendered or lapsed.

Abacus works to ensure that you receive the perfect settlement option that best suits your situation and financial future:

• A traditional option allows you to sell your entire life insurance policy for a cash amount above the policy’s surrender value. You have no further obligations or claims to the policy, with all future premiums paid by the buyer.
• The retained benefit option means you would no longer pay any premiums and retain a portion of your benefit. When the policy ends, beneficiaries will receive a guaranteed percentage, but you have no further obligations or payments to make.
• The hybrid option is a combination of two, where you would sell a portion of your life insurance policy. With this option, you receive a cash payment now, your beneficiary gets a guaranteed percentage of the benefit when the policy ends, and you have no further obligation to pay future premiums.

Finding ways to best utilize your assets can open up doors to financial freedom. Understanding the current worth of your life insurance policy can help you better plan for the future or allow you to live more comfortably in the present. Reach out to a member of our team here at Abacus, and we would be happy to help you see the current worth of your most valuable asset.