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Life insurance is an evolving industry. Many people who bought policies decades ago don’t know that they are paying far too much for too little in return. Sadly, in days gone by the only exit strategy was to surrender a policy and walk away with pennies on the dollar. Fortunately, now there are other alternatives. And during an economic downturn, this can make a difference in the lives of many retirees.
In life settlements, institutional investors buy life insurance policies from policy owners who have shortened life expectancies, make premium payments as they come due, and then collect death benefits when the insured person dies. Meanwhile, by selling their policy in a secondary market, retirees are given the flexibility to either buy a more cost effective policy with the proceeds, or invest the money however they see fit.
This ability to sell a policy based on your life expectancy and current health for well over the cash value adds great significance to your policy. Even if you are not concerned with a profit, it is possible to recover all or some of the premiums you’ve paid.
Don’t let your ultimate demise be your only exit strategy from your outdated insurance policy. Call Howard Kaye to see if a life settlement is the right option for you.
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