Converting An Unwanted Life Insurance Policy Into Ca$h

Converting An Unwanted Life Insurance Policy Into Ca$h




Do You Own A Life Insurance Policy That You No longer Need or Want? 
It is possible that you may be able to can get a CASH settlement in excess of the 
current cash surrender value by selling your policy in the secondary market to an 
investor.

Reasons To "Sell" A Policy:

Family Situations

Bankruptcy

Estate Reduction

Estate Tax Revision

Business Was Sold

1035 Exchange

Drain On Income

Divorce - Separation

Death of A Spouse

Retirement

Declining Health

Non-Performing Policy

Wealth Planning

Work Related Changes

Qualifying Types Of Life Insurance:

Group

Whole Life

Term (Convertible)

Joint

Universal

Variable

Key Man (business related)

Who Is A Qualified Candidate?

Mature men and women over age sixty-five years of age who have an existing life 
insurance policy and whose circumstances have changed since purchasing the policy 
originally may qualify for a purchase and sale of their policy. Financial advisors view 
this as a powerful and innovative wealth and estate planning tool.

How Much Is A Policy Worth?

There are a number of variables that determine the offered amount for a policy, 
including the following;

* Age (of course) * Premium cost

* Client's Health * Type of Insurance

* Death Benefit * Insurer Rating

* State of Residence *Underwriting criteria

Note: As a general rule the most heavily weighted items are the age of the insured 
(the younger a person is a lesser current value will apply), the health condition, and 
the amount of the premiums that apply are the primary determinants in arriving at 
the price offered for a policy.

What benefits are there for the insured?

First - there is absolutely no cost for a policy appraisal

Offers liquidity to clients

Eliminates the insured having to pay premiums

Funding for 'Alternative' products that fit current needs

Offers an innovative and better solution for current status

Provides another alternative for divesting policies that are no longer needed or 
wanted. 
(As opposed to letting policies lapse or accepting the cash surrender value 
established by the originating life insurance company.)

How Does selling A Policy Work?

1. Policy owner (or professional financial advisor) requests and authorizes a policy 
evaluation.

2. Policy buyer obtains needed documentation, including policy information and 
physician statements, etc.

The highest possible offer is obtained in the secondary market.

The offer is submitted to the insured for acceptance.

If accepted, a contract is sent for signatures.

The change of ownership is completed and funds are released to the previous owner 
(usually the insured).

Afra AmirSanjari is the Principal for Peacock Capital. Peacock Capital specializes in solving the cash flow challenges of Small/Medium Businesses, Government Vendors and Individuals with innovative financial solutions by providing a network for securing operating capital.



Article Source: http://EzineArticles.com/24801

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