Aging Life Care professionals are called upon to assist clients with resources to handle their particular situations, including evaluating the financial resources necessary to help clients ensure quality care and an optimal life. Did you know that 500,000 seniors a year will walk away from their life insurance policies? This happens because they no longer want the policy, need the policy or can afford the policy any longer. The reason a policy was purchased 10, 20 or even 30 years ago is no longer a concern. The house is paid off, perhaps a spouse has passed away, the kids are grown and have their own lives, etc. They do not know there is another option that can have dramatic impact on the ability of people to pay for their care needs.
A life insurance settlement is that option, and is the ability for a client to sell their unwanted/unneeded life insurance policy for cash. The investor groups who purchase these policies become the new owner, pay the premiums, and become the beneficiary. The client receives cash today, and the buyer receives an investment with a future return. The amount a policy could we worth is very specific to each client, but policies can be worth tens of thousands or hundreds of thousands of dollars…all from an asset a client was going to walk away from. All different types of policies can be sold, including term policies.
Here are some real-life stories of some of our clients whose lives were changed through a life insurance settlement:
*A 66 year old woman with MS had a $150,000 term life insurance policy. Her beneficiary was her ex-husband. There were no children, and no one she wanted to leave the money to. This policy was no longer needed or wanted. She did not know a life insurance policy was an asset that could be sold. Since she didn’t need it anymore, she decided selling the policy made sense, in order to give her money for the care needs she knew she would need in the future. We marketed the policy and she sold it for $25,000, giving her the financial cushion she wanted.
*A 78 year old gentleman with cancer had a $250,000 term policy. He purchased the policy for his wife, so she would be protected and could pay off the house, if something should happen to him. The house had long been paid off, and his wife had passed away 4 years ago. His daughters were the beneficiaries. They had successful careers and their families did not need the money. He decided that he wanted to sell the policy to make his life more comfortable while he was still here. The opening offer on his policy was $15,000. By the time we were done, he sold it for $128,500. That will go a long way to helping him stay comfortable for the rest of his life.
*A 58 year old gentleman with significant heart issues had a $1.6 million universal life policy. He was a successful businessman, and his family was well cared for. He had a dream of living on a ranch for the rest of his life. So, he sold his business, sold his house, and sold his policy for $350,000 (the opening offer was $125,000). Now, he has the resources to live the rest of his life the way he wants.
*A healthy 88 year old gentleman needed to find money to continue to pay for his wife’s home care needs. He had several life insurance policies. He sold his $114,000 policy for $26,000, giving him the resources he needed to continue the care for his wife.
*A 66 year old gentleman with liver issues had a term life insurance policy that was reaching the end of its term. He purchased it for his wife to pay off the house, if something happened to him. The house is paid off, and he was not going to continue the policy. He sold the policy for $75,000. This was “found money” for him, as he was going to walk away from the policy with nothing, and was a game-changer, to help make his life more comfortable.
These are just some examples of clients who were able to repurpose an asset they didn’t know they had, into cash to use to take care of themselves and their families. We are life insurance settlements brokers and are here to support Aging Life Care managers, and their clients. Having access to many investor groups, as brokers, our role and passion is to represent our clients to obtain the highest amount for their policy as possible.
If you know anyone who is thinking of lapsing, surrendering, or walking away from their policy, please contact us first so they can find out if a life insurance settlement may work for them. There is no up-front cost to find out how much a buyer may be willing to pay. Contact us – we’re here to help.