What’s the Difference Between Aspen Life and a Traditional Life Settlement?

What’s the Difference Between Aspen Life and a Traditional Life Settlement?

At Aspen Life, we pride ourselves on what we bring to the table. We know that what we do is different, powerful, and even industry-changing. In order to really understand how significant Aspen Life is–and the positive impact it can have on your financial life–it might help to understand what makes us so unique.


But First, Some Basics


In order to best understand what a life settlement is, it’s important to know two things about life insurance, to begin with. First, that it is like a virtual asset or “property” that you can own, sell, and even use as collateral. Secondly, it helps to know some of the parts that make up a life insurance policy–the premiums, the cash value, and the death benefit, especially.


To review, you pay “premiums” on a regular basis to keep your life insurance policy active, or in-force–kind of like your monthly subscription cost for Cable TV. When your policy is in force, (whether for a specified term or for your whole life) your insurance company is obligated to pay out a “death benefit.” A death benefit is the amount of money given to your beneficiaries when you pass away.


Some types of life insurance (like whole life policies) also provide cash value growth, meaning that a portion of the premiums you pay are set aside within your policy and have the opportunity to grow with interest and dividends, kind of like a bond or savings account. The growth isn’t fast, but it is consistent, predictable, and (in the case of whole life policies) is guaranteed not to go down in value.


What is a Life Settlement?


Now that we’ve reviewed some of the life insurance basics, let’s move on to explain what a life settlement is and how it works.


The traditional idea of a life settlement is simple enough. It connects two people with different needs and allows them to meet both needs. One person has a life insurance policy with a future death benefit but has reasons to want money upfront, while they’re alive. And the other person has money available today, and wouldn’t mind trading it for more money down the road.


A “traditional” life settlement, then, would involve the first person selling their policy. They get the money on hand that they want, and in turn, the buyer (as the new owner of the policy) is able to earn a “return on their investment” by receiving the death benefit when the person they purchased the policy from passes away. Until that happens, the buyer continues to pay the premiums for the purchased policy in order to keep it active until it “pays off” for them.


For this reason, life settlements are almost exclusively available to those in poor health or with shortened life expectancies. The sad fact of the matter is that traditional life settlements only turn a profit when the original owner passes away.


What Makes Aspen Life So Different?


There are several things that set Aspen Life Settlements apart–the first being that we are not invested in your passing. We hope you live a long, happy, and fulfilling life.


But how does that work? Well, recall our life insurance basics section. Traditional life settlement firms make their money with the death benefit aspect of a policy. Aspen Life, on the other hand, makes our money in the cash value part of a policy. Cash-value life insurance provides us an extremely safe and predictable way to grow our money.


Because that’s our focus, we leave the death benefit with you–and your beneficiaries who will be blessed by it. After purchasing your policy, Aspen Life would be the owner, meaning we would pay all future premiums, and control the cash value for our portfolios. But because we make our money another way–and as an added incentive to you–you get to keep your death benefit.


Allow us to make that even more clear. When you come to Aspen Life with a cash value life insurance policy, we will pay you upfront for your policy, in a way that means you will no longer have to pay premiums on it… and you get to keep the death benefit coverage of the policy without having to go start a new one.


Aspen Life Settlements is committed to providing a more caring, open, and powerful kind of life settlement to everyone who is looking for something better. Whether you can’t qualify for a traditional life settlement, or just need cash on hand but can’t stand the thought of losing your coverage, Aspen Life is here for you.


Reach out to us today for an initial appraisal to see how much your policy is worth.

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