Financial Advisors
Help your clients convert their policy into cash without surrendering it or losing their death benefit
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 policy 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 if you sold it to them, you’re often the one who takes the blame. In addition, all the lapsed and surrendered policies can have a huge impact on 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. Let Aspen Life help you turn a bad situation into a good one.
Your client’s life insurance policy is an asset that needs management. Help them convert their policy into cash with a life settlement.
WHY your Client may be looking to sell Their Life Insurance Policy:
No longer see it as a wise investment
Would like to purchase a different kind of life insurance
Can’t afford to keep paying the premiums or want to spend the money elsewhere
Need immediate cash for medical issues, college tuition, down payment, etc.
Whatever the reason is for looking to cash in, we want to be sure you have the best options available. Read more on what a “typical” life settlement entails and how Aspen Life can 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 that is typically greater than its cash surrender value, but less than the policy’s full 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 benefit and the beneficiaries get nothing.
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.
- 65 or older and/or in poor terminal health
- Have a policy with at least $1,000,000 of death benefit
- Qualification process can take months and requires multiple doctor reports and medical records prior to knowing if there will even be an acceptable offer
- Provide you with cash and let your family retain the coverage
- We’re interested in most Whole Life insurance policies and some IUL policies
- Your age or current health condition is not a contributing factor
- We look to grow our money inside the cash values of your policy, so we want you to live as long as possible.
- We typically pay you the same for your policy than if you just surrendered it to the insurance company
- We can get your money in as little as 1-2 weeks
- You and your beneficiaries get to keep the death benefit (minus last available cash values)
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!
What policies are we interested in?
We’re interested in most whole life insurance policies and some IUL policies (regardless of age or medical condition)
What is in it for us?
We look to grow our money inside the cash values of the policy, so we have absolutely ZERO investment in your client’s passing
How long does it take?
Your clients can get their cash in as little as 1-2 weeks
What is the benefit to me (the advisor)?
YOU get to keep your persistence level high and remain their trusted advisor
What is in it for you?
We typically pay the same (or sometimes more) for policies than if your clients just surrendered it to the insurance company
What happens to the policy?
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
Who keeps the death benefit?
Your clients will keep their death benefit *(minus last available cash values)
Who makes commission on the policy?
You get to keep future renewal commissions for as long as the policy remains in force
Some settlement companies offer a Retained Death Benefit where the insured can retain a portion of the policy’s death benefit, however, it usually means receiving a lot less for the policy. It is 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. Unfortunately, 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.
Get paid to save or salvage a good policy, continue to receive renewal commissions, keep your persistence high and be the hero your clients need. Contact Aspen Life today to learn more
Are You a Financial Advisor?
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.