What Is A : Life Settlements- Life Settlement- Senior Settlement
Life Settlements help life insurance policy owners and their loved once the opportunity to sell their policies in exchange for a large cash payment, that is larger than the cash surrender value, if any, offered by the life insurance company. The majority life insurance policies are obtained to care for loved ones and to protect them from the uncertainty in life. The majority of these policies are never needed and results with no claim (88%). Once the policies have provided their valuable purpose, the owner either allows them to lapse or give up the policies to the insurance company for cash surrender value. The current growth of the Secondary Life Insurance Market provides the policy owner and insured, a chance to walk away with a large amount of money.
Life Settlement - Life Settlements – Senior Settlement
“Get Cash Now For Your Unneeded Life Insurance Policy”
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What is a Life Settlement?
A life settlement is the sale of a life insurance policy for a large cash payment that is better than the policy’s cash surrender value,
A life settlement is defined as a financial transaction in which a policy owner holds an unwanted or not needed life insurance policy and sells the policy to a funder who represents a bank or large institutions.
The purchaser becomes the new owner and beneficiary of the policy and is responsible for all following premium payments.
Life Settlement Qualification
• 70 years of age or older ( Male and Female )
• Minimum face value of $500,000 (No Maximum)
• Policy is more than 2 years old
• Premium on the policy are less than 5% of the policy face value
• Cash surrender (if any) is less than 15% of the policy face value
• Types of policies : Universal Life , Whole Life , Term ( Only if convertible )
• Life expectancy greater than 2 years but less than 15 years
The process
Application - Insured and policy owner sign an application giving Arbel Life, LLC the right to gather medical information in order to determine eligibility and pricing for the settlement.
Evaluation -All material and evaluations gathered by Arbel Life, LLC are submitted to all licensed and regulated providers in order to get the best offer on the policy
Negotiation - Arbel Life, LLC will negotiate the offers with the providers and the client for fast and best results.
Contract – once agreed on a purchased price for the policy a contract will be formed by the buyer. Arbel Life, LLC will make sure everything is being done correctly and all funds are being secure and ownership on the policy is being transferred and client is being paid.
Reasons for selling the policy
Children are all grown up and doing well
Need cash for retirement
Eligible for better performing product
Need funds for investment
Premium on policy become to be very expensive
Change in your estate structure and worth
Divorce or outlive the beneficiaries
Need large amount of cash and do not want to liquidate assets and savings
Want to give large amount of money for charity while alive
Help beneficiaries before passing away.
A company key person insurance policy is no longer needed
The life insurance coverage is related to an obsolete buy/sell agreement
Case studies
Female: 79
Policy Type: Universal Life
Face Amount: $750,000
Cash Value: $107,000
Life Settlement cash paid to customer: $150,000
Male: 70
Policy Type: Convertible Term Life
Face Amount: $500,000
Cash Value: $0
Life Settlement cash paid to customer: $95,000
Male: 86
Policy Type: Universal Life
Face Amount: $1,000,000
Cash Value: $155,000
Life Settlement cash paid to customer: $450,000
Boaz Arbel is the General Manager at Arbel Life, LLC, a New York based company that specializes in the high net worth senior market. To obtain further information about Life insurance Premium Finance, Life Settlement and to read additional articles about these subjects please visit the website: www.arbellife.com/
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