Term Life Settlement
Term Life Settlements enable qualified Policy Owners to sell their convertible term life insurance policy for cash in the secondary market, even though the policy has no cash value.
The decision to purchase a Term Life Insurance policy is understandable – annual premiums for a Term Life policy can be significantly cheaper than a Permanent Policy – and middle-aged Americans often assume they’ll only need their policy for a defined period of time. And, if they want a Permanent policy later in life, their Convertible Term Life Insurance policy can always be easily converted to a Permanent policy, right?
Well, not necessarily. Unfortunately, many Senior Americans are now discovering that they still need financial security, and their easily convertible Term Life Insurance policy has serious strings attached: prohibitively expensive annual premiums. Indeed, this may be why Term Life Insurance is the most commonly canceled or lapsed type of life insurance.
Fortunately, there’s hope for people in this situation. Instead of converting their Term Life policy to a Permanent policy with expensive annual premiums, many seniors are opting for a Term Life Settlement, which allows qualified candidates to sell their Term Life Insurance policy for a cash settlement in the secondary market for life insurance, even though the policy has no cash value!