Help Your Clients Convert Their Policy Into Cash Without Surrendering It Or Losing Their Death Benefit
...yes it's really possible!
Did You Know?
According to the Life Insurance Settlement Association (LISA)…Each year more than $100 billion dollars of life insurance payouts are allowed to lapse simply because most owners don’t know they can sell their policy.
Worse than that…many policy owners decide to surrender their policy for pennies on the dollar!
And even worse than that…if you sold it to them…you’re often the one who takes the blame. Not to mention what all those lapsed and surrendered policies do to your persistency and renewal commissions!
Even if you didn’t sell them the policy, the experience most likely left a sour taste in their mouth and they could be wondering whether or not your advice is in your own best interest or theirs.
But it doesn’t have to be that way.
Your client’s life insurance policy is an asset that needs management. You can help them convert their policy into cash with a life settlement.
However, you should know not all life settlements are created equal (…more on that in a minute).
There are many reasons why your clients may want to sell their whole life insurance…maybe they
- No longer see it as a wise investment
- Want to purchase a different kind of life insurance
- Need immediate cash for a medical issue
- Want the money to spend elsewhere
- Can’t afford to keep paying the premiums
Whatever the reason for wanting to “cash in”…they expect you to provide them with the best options available. Here are the differences between a “typical” life settlement and how we help you.
What Is A "Typical" Life Settlement?
A typical life settlement involves the sale by the owner of an existing life insurance policy to a third-party investor for an amount which is usually greater than its cash surrender value but less than the policy’s full death benefit.
The seller receives an upfront cash payment and the buyer assumes responsibility for all ongoing premium payments.
When the insured passes away, the investor collects the policy’s full death benefit.
The beneficiaries get absolutely nothing more.
There are companies that offer a Retained Death Benefit where the Insured retains a portion of the policy’s death benefit, but it usually means receiving a lot less for the policy. It is typically the equivalent of only selling part of the policy, but having to give up control of making sure premiums get paid for all of the policy.
This leaves you at the mercy of the buyer and their ability and will to pay future premiums, making you vulnerable as to whether or not you end up getting any sort of payout on the portion that was retained and never sold.
What’s even worse is…to qualify, you generally must be 65 or older and/or in poor (terminal) health and have a policy with at least $1,000,000 of death benefit. This means very few are even eligible, especially since a large portion of all whole life policies are surrendered within the first 10 years!
Because this type of life settlement involves elderly or terminal clients, these transactions are highly scrutinized by regulators.
The process of qualifying can take months and involves all kinds of doctor reports and medical records before you even know what kind of offer you would get.
Even with all the hassle, these types of life settlements can still be well worth it for you. They often pay 300%-1000% more than the surrender value the insurance company is offering, but they’re normally only pursued when there is a high likelihood of success.
We can also help you pursue these types of transactions, but let’s look at a much better option for a large percentage of your current clients…
How Is Aspen Life Settlements Different?
We’re not like most life settlement companies…we’ve found a way to provide your clients with the cash they want AND retain the coverage they need!
- We’re interested in most whole life insurance policies and some IUL policies (regardless of age or medical condition)
- We look to grow our money inside the cash values of the policy, so we have absolutely ZERO investment in your client’s passing
- We typically pay the same (or sometimes more) for policies than if your clients just surrendered it to the insurance company
- We normally pay all future premiums for as long as we own the policy. This is how we keep our money invested, so we intend on holding the policy indefinitely
- Your clients can get their cash in as little as 1-2 weeks
- Your clients will keep their death benefit *(minus last available cash values)
- YOU get to keep your persistency level high and remain their trusted advisor
- You get to keep future renewal commissions for as long as the policy remains in force
Your client still wants a death benefit and no longer wants or needs the cash value benefits. We want the cash value benefits and have no need for the death benefit. It’s a great fit for all parties involved!
There’s no catch..it’s really that simple.