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Policy Matters

Third Quarter 2021

NEWS YOU CAN USE FROM THE EXPERTS AT LLIS

“Jackpot! I found a quarter between the cushions!” I can remember those words coming out of my brother’s mouth. And then the day-dreaming about what he’d spend that 25 cents on.

It was always an adventure. “I’ll buy a Magic 8 ball and then I’ll know all about my future! Or a pogo stick and jump all the way from here to Grandma’s house!”

Life settlements are your clients’ couch cushion change. They can secure a better financial future for them or take them on adventures around the world. After all, people deserve to have the same options with their life insurance policies as they would have with any other property. Most just don’t know they have the option.

A life settlement is the sale of an unwanted or unneeded life insurance policy. Typically when the insured is in poor health and the sale would mean they’d make no more premium payments and can use the money in a number of ways.


Here is one advisor’s client story:

His client and her husband had two $250,000 convertible Term policies. We helped convert them from Term to Permanent Universal Life policies. The client had to pay the annual premium needed to put them in force, but it was well worth it.

The policies were sold as a package, so the total death benefit was $500,000.

The policy owners had paid the premiums for eight years (about $8,300) and wanted cash now to buy an RV and travel.

The offer was $55,000 for each policy, for a total of $110,000. Plus, they were reimbursed for the premium they had to pay at conversion. The advisor informed us that they were:

Two years ago, these policies would have netted about $60,000 total. What made them more valuable in 2021? The insured had underlying health conditions that made him more susceptible to dying of COVID-19. So called “long-haulers” would also fit in this category.

  • Do your clients have existing life insurance policies they no longer want or need?
  • Have you been helping them debate what to do with them?
  • Should they surrender them for their cash value?
  • Should they reduce the death benefit so they will not have to keep paying premiums?
  • Or should they just let them lapse, losing all of the premiums they’ve paid in?

Why not introduce them to life settlements? All we need are policy details and your client’s age and health information. Judith Maurer can help you get the evaluation process started with an email or a call to 877-254-4429.

SOLUTIONS AVAILABLE THROUGH LLIS

Term Life Insurance | Low-Load Universal Life (Individual & Survivorship) | No Lapse Guaranteed Univeral Life (Individual & Survivorship) | Long Term Care Insurance | Disability Insurance | Critical Care Insurance | Low-Load Variable Annuity | Immediate and Fixed Annuities | Low-Load Variable Universal Life | Hybrid Life/LTCi | Hybrid Annuity/LTCi

(We recommend low-load permanent life insurance and annuities when possible)

(Not all policy types available in all states)

For a list of current providers, visit the Advisor Tools section of our website and click on "Insurance Companies We Work With".

NAPFA ACP Garrett Planning Network NAPFA XYPN