A life settlement allows you to sell your life insurance policy (both Permanent or Term-Life) for more than the policy’s cash value. Instead of just lapsing, canceling, or surrendering your policy due to expensive premiums, no longer needing life insurance, or needing cash to pay for medical treatments or the ever-increasing costs of long-term care, you can sell your life insurance policy directly to a licensed Life Settlement buyer.
If you’re wondering why you’ve never heard of Life Settlements, there’s a simple explanation. Many insurance companies have worked to suppress information about the life settlement option. They do this by barring their agents from informing policy owners about life settlements. When an agent does suggest a life settlement, often they can be penalized or fired.
As shocking as that fact is, it actually makes sense when you realize that more than 80% of life insurance policies never pay out a death benefit. The beneficiaries never receive a dime, or policy owners are forced to cancel, surrender, or stop paying due to increasing premiums. Instead, the life insurance company keeps all of the premiums you’ve paid. In fact, it’s standard procedure – Life Insurance companies use a pricing model called “Lapse-based Pricing”. A Wharton Business School study found that life insurance companies actually encourage life insurance policy lapses, cancellations, and surrenders, because they profit substantially by keeping the majority of the premiums you’ve paid all these years.
According to Statista, in 2015 there was over $20 Trillion in active life insurance policies in the United States, and that value is only increasing. The sad truth is that the Life Insurance Industry will never pay a claim on more than $16.5 Trillion of that death benefit. In effect, the Life Insurance Industry works to prevent you from knowing your Life Settlement options so that they can protect their bottom line, regardless of how that may impact you or your loved ones
We think not informing you of all of your options is wrong, and that’s why we started ReverseLifeInsurance.com. If a Life Insurance Company wants to tie your Agent’s hands and suppress information about your Life Settlement options, we’ll do everything we can to make sure you know all of your rights and options.