Life Insurance Settlements

Life Insurance Settlements

A policy settlement could provide much-needed financial help. Be sure to hire the best broker to negotiate a strong settlement.

Broker Negotiations Play a Major Role in a Single Life Settlement Option

Purchasing a life insurance policy helps protect your loved ones from financial hardship in the event of your passing. Unfortunately, life insurance premiums can sometimes become unaffordable over time. Retired persons, in particular, might find it difficult to cover the cost of their life insurance policy. Fortunately, life insurance settlements could open the door for those looking for a financial solution.

What Is a Life Insurance Settlement?

Essentially, a single life settlement option involves selling an insurance policy to a third party for a lump sum. The sum is typically larger than the cash surrender price an insurer would offer, but it’s also less than the policy’s death benefit.

Some may be confused as to why a third party, often a company, would choose to purchase an individual’s life insurance policy. Simply put, the buyer procures the life insurance policy as a form of investment. The third party collects on the death benefit in exchange for purchasing the policy and taking over any costs associated with it.

The Importance of Effective Negotiations

While you as the policyholder may wish to sell your policy, you may not have the necessary knowledge and experience to get the best deal. Negotiating the best sale price on a policy isn’t for those who don’t understand the market or process behind life settlements. This is where an insurance settlement broker can prove to be a strong partner for a seller.

The broker steps in and represents the policyholder. Specifically, the broker negotiates the sale price. Obviously, the goal of the broker is to get the best price for the seller.

Hiring the Best Broker

In the same way that you’d hire a professional real estate agent to sell your home, it’s important to find an experienced life settlement advisors to navigate the market and find you a qualified purchaser. Because policy buyers have different budgets, objectives, and interests, those trying to sell their policies will often receive a wide range of offers. Experienced brokers will help negotiate with buyers to get you the best deal available.

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