A Specialist Shares the Secrets of Life Insurance Settlements

A Specialist Shares the Secrets of Life Insurance Settlements

Lisa Rehburg says she’s been working in the settlements business for thirty years and wants to share her experience.

Life insurance settlement isn’t for every client, but for some it’s the ticket to a more comfortable retirement. 

Unfortunately, says Rehburg, many professionals simply don’t know when and how to employ life settlements. She offers the examples of four recent clients to help clarify the process and indicate when it is appropriate to proceed.

One client is 69 years old, hale and hearty, and holding a basic $100,000 term life policy. The customer has adult children who are no longer in his care. He does hope to leave them something one day, but has another life policy in place to take care of death expenses and provide a legacy. Using the term policy premium to pay down his mortgage seems a better way to employ his capital. If he simply stops paying, he’ll get nothing from his policy investment. In this case, selling the policy to a third party makes sound sense.

Another customer is 58 and holding a flexible premium UL policy worth $1.6 million. He’s been paying on it for 22 years, but doesn’t need the extensive coverage anymore – he’s approaching the period of life where he wants to simplify his holdings and buy a nice retirement home. His family is supportive of the idea, so no hurt feelings can be expected when it comes time to read the will. A life insurance settlement should net him considerably more funds than simply accepting the policy’s surrender value. In this client’s case, pursuing a settlement is a no-brainer. 

For more information, please read:
4 Clients Who Sold Their Life Insurance Policies | ThinkAdvisor


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