An Open Letter to Whole Life Insurance Policy Holders

An Open Letter to Whole Life Insurance Policy Holders

Dear life insurance policy holder,

If there’s anything that’s certain in today’s economy, it’s uncertainty.

We’ve seen — time and again — how economies became prosperous, then over-extended, then humbled, then depressed, then through sheer determination, rose again to respectable levels of prosperity. We also get that families are no different. Some years, you may be doing well financially.

Then… life happens.

You’re unemployed. You (or a family member) experiences a medical emergency… A relative needs housing assistance… a death… divorce…

You just never know when the unexpected is going to happen. And it’s during those times that you need a quick, fast infusion of cash into your bank account and an easier way to balance your budget each month.

Where can you get fast cash?

You can always hit up relatives and friends, get a bank loan or hit the credit cards. The problem with these methods is that they’re not solutions, because in the final analysis, you may end up paying the funding source more than what you borrowed. Like fast food, yes, it’s fast, but not necessarily best for you.

In the life insurance industry, consumers with policies have an option to access cash quickly that doesn’t require relatives, banks or other expensive loan options. Instead, all you need is a quick phone call.

If you’re a whole life insurance policy owner, you can borrow against the cash values or surrender your policy. If you borrow against your policy, you will be charged interest on the loan and will have to continue paying the policy premiums.  

When you surrender, you stop making payments and will get paid any remaining surrender value of your policy. This will give you some cash and help save you from paying future premium payments, but unfortunately, you will lose any and all rights to your death benefits.

In other words, all that money you invested into your policy (minus anything you got back) and all the future protections which came with it, are gone.

It’s like renting a home — you paid all that money to live somewhere, but in the final analysis, you eventually owned nothing.

While these methods can have their advantages, they involve accessing part of the cash values and either paying interest on policy loans or giving up death benefits wanted for family needs. Furthermore, premiums will still need to be paid, requiring more negative cash flow.

There’s another option: Sell the unwanted portions of the policy, getting all of the cash values, while the buyer pays for future premiums.

You continue to name the beneficiary for the entire death benefit, minus the last available cash values. This allows you to keep needed coverage for your family.

These buyer’s needs are typically exactly the opposite of what you’d be accomplishing: they have the cash and want a conservative place to park it and aren’t interested in the coverage afforded your loved ones.

You get what you need and they get theirs too! These buyers need special life settlement licenses and are strictly regulated in how they do business, which means you aren’t dealing with just any guy off the street.

So, what’s a better way to get the cash you need?

If you need cash, there may be a far better option than surrendering your policy.

Instead of surrendering, you sell your policy

  • Now, in this case, you don’t sell to a friend, relative or on Ebay. Instead, very specialized (and highly regulated) businesses will purchase your policy.

  • The good news is, you’ll no longer pay your monthly premiums; the purchaser of your policy will.

  • Even better, Aspen Life Settlements will let you keep your death benefits minus the last available cash values. This means your beneficiaries will continue to be covered by your policy in the event of your death for as long as the policy remains in force (which is expected to be indefinitely).

What if you don’t “need” the money, but have other reasons for getting the cash?

Often, people treat their life insurance policy as a conservative place to park and grow their money. We agree that this can be good, we buy insurance policies for the very same reason, but we also understand those who hold such a philosophy may still want to cash-in on their life insurance policy. Why? Because they may have found another investment opportunity with a better, quicker and more attractive pay-out.

  • The fact is, at Aspen Life Settlements you can access the value of your policy in as little as two weeks and still keep the coverage your policy gives you, regardless of your reasons.

How easy is it?

Unfortunately, with most of the companies you work with, the path to getting your money is fraught with frustrations.

Most companies will only purchase your policy if you have a have a large death benefit — say, $1,000,000 or more. Most say that they’ll only purchase your policy if you can prove you have a terminal illness, like cancer or are between 75 to 85 years old or more with a life expectancy of less than 8 years.

These companies may pay a premium for your cash values, but only make a profit when you die, so needless to say…you don’t get to keep your death benefit.

You may also have to wait several months until you get your money and go through rigorous medical paperwork.

Many businesses that purchase life insurance policies feature more than one — and usually all — of these conditions, but not with us.

Get your cash fast WITHOUT so many conditions!

At Aspen Life Settlements we have a very different model.  We believe if you have a life insurance policy, and need to access the cash as soon as possible, surrendering your policy is one of the worst things you can do.

We make money as the cash value of the policy increases, so having to meet numerous health, age and policy size conditions, is totally unnecessary. This means getting your money and saving you from future payment obligations is a much faster and easier process!

It’s your money. You’re entitled to it as quickly as possible. That’s why, with Aspen Life Settlements, you could have your money within a couple of weeks.

Here’s how we do it

  1. You’ll contact us, and we’ll answer your questions! During the course of our conversation, we may mention our needing an “Inforce Illustration” from your insurance company. Inforce illustrations (or “Inforce Ledgers”) are reports which show your current life insurance policy’s future premiums, death benefits and cash values. You have the right to receive at least one inforce illustration for free annually.

  2. Once we receive your inforce illustration, we can provide you with a firm quote on the amount of money we would be willing to pay for your policy. We’ll also tell you how much money in death benefits you would retain.

  3. Armed with our quote and applications, you’ll want to review all paperwork with a trusted professional(s). Accountants, attorneys and wealth management advisors all can help you determine if you should continue with the process.

  4. Once you’ve agreed to the terms and conditions of the paperwork, we’ll set up a third-party escrow account with an FDIC insured bank. This is where the cash value of your policy will be transferred to you.

  5. Once your insurance company has acknowledged the transfer, the money will be transferred into your account within (3) business days.

Throughout this entire process, we at Aspen Life Settlements want you to be entirely comfortable with, and knowledgeable about, the transaction. We want to make sure it’s the best solution for you and that you get your money as quickly and efficiently as possible.

Remember:  GET the cash…STOP making premium payments…KEEP your death benefit (minus current cash value)

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