July 2, 2021
Have you ever thought that your life insurance policy is no longer needed or too expensive to maintain? If so, you are not alone. Did you know that you have the option to SELL your policy for the real market value, rather than simply lapsing the policy or surrendering the policy back to the insurance company?
The sale option is called a life settlement and is being discovered by more and more people every year. The life settlement market – where people who own a life insurance policy make the financial decision to sell their policy to a third-party – has been growing steadily for the last decade. According to state regulatory filings reviewed by The Deal, in 2020, 3,241 life insurance policies were sold in the life settlement market, an increase of more than 12.5% from 2,878 policies in 2019.
The total face value of the policies purchased in 2020 was more than $4.6 billion, an increase from $4.4 billion in 2019. In total, policy sellers received nearly $848 million from selling their policies into the life settlement market, many multiples of the policies’ cash surrender value.
What can we say after looking at the numbers?
- The Life Settlement market continued to grow, even while the country was experiencing tremendous challenges during the Covid-19 pandemic.
- Consumer awareness of Life Settlements as an alternative option to policy lapse or surrender continues to grow as the life settlement industry pays out nearly $1 billion in cash to American seniors.
- The average amount paid out to policy sellers was 21% of the policy face value, an increase from the prior year.
The exciting momentum in the life settlement market has continued into 2021, with increased activity and growth. More and more seniors are learning that selling their life insurance policy is an important part of their financial planning and wealth management strategy.
At Q Life Settlements, we work with you to understand the market value of your life insurance policy and, should you decide to do so, help you sell the policy for that market value. If you, family, friends or associates have a life insurance policy that is no longer needed or is too expensive to maintain, the experts at Q Life Settlements will help you through the entire life settlement process. The sale of a policy will not only eliminate the financial burden of ongoing premium payments, but also result in an immediate, upfront cash payment that can be used to support your current financial plans.
All types of life insurance policies are eligible to be sold. Life settlements work best for people aged 70 and older, but those with significant health impairments may qualify at younger ages. If you would like to discuss the possibilities of a life settlement, please complete the information below, and we will be in touch with you to see how we can help you.