I never get tired of sharing this:
A life insurance policy is an asset. If a senior is not going to keep their life insurance policy—for whatever reason—you have a protected property right to sell that policy.
In many cases, you’ll receive significantly more than if you simply lapsed or surrendered the policy back to the issuing insurance company.
Just like a house or a car, life insurance policies can be a hidden treasure that can result in the senior receiving as much as 10 times more than the policy’s cash surrender value.
Many seniors use the proceeds they got from the sale of a policy to fund retirement or pay for long-term care needs. Yet many seniors don’t take advantage of this opportunity.
Why? Because they don’t know it exists or, too often, the financial professionals who advise them—CPAs, wealth managers, estate attorneys, etc.—don’t know about it, either.
Secondly, even when they are aware, they don’t understand it.
As such, after meeting a lady that was from Minneapois and in the secondary insurance market. She had spent much of her career dispelling the myths surrounding this asset that seniors could use, sparked my curiousity.
Perhaps there was away for seniors with cancer to tap their life insurance for needed cash?
Or if a person could receive more cash from selling their poicy, rather than cashing the policy in, why wouldn't they?
Did something smell funny about the life settlement business?
Here is an over view of what I found -