Our Blog

An Ongoing Series of Informational Posts and Ideas

New Tax Law Positively Impacts Life Insurance Settlements

July 16, 2018

The new tax law passed in December positively impacts life insurance settlements in two ways:

1) There are more people who may not need their life insurance policies anymore due to the doubling of the estate tax exemption. People who bought life insurance to cover their estate taxes may now be exempt, making that life insurance policy unneeded or unwanted.

2) Life insurance settlements receive a much more favorable tax basis.

View the full article: https://www.thinkadvisor.com/2018/02/02/how-the-new-tcja-tax-law-affects-life-settlements/?slreturn=20181012191742

Great information about the benefits in the new tax law. If you know of anyone who does not need or want their life insurance policy anymore, we can help. Feel free to contact us for more information. 

Simple Way to Retain Clients and Ease into a Life Insurance Settlement Discussion

August 16, 2018

I just heard about an idea how some agencies are retaining clients and introducing the idea of a life insurance settlement, if appropriate. This can work for any client, but life insurance settlements work best typically for clients age 65 or older, and for life insurance policy face amounts of $100,000 and over. 

About 6 months before a term policy expires, contact the client. 

1) Send a conversion illustration. Ask them if they would like to get a new policy or convert their current one. If yes, they would like to convert or get a new one, good for the client...and good for you. Another commission. Done.

2) If no, they do not want a new policy, or pay the conversion premium, do they want to pay the annual renewable rate? This is usually expensive, but an option. If yes, good for the client and for you. Done.

3) If no, they do not want to pay the annual renewable rate, do they know they have an option to sell their policy? They will most likely not know they can sell this "hidden asset", especially since it is a term policy. This is a great time to let them know it is possible to receive cash through a life insurance settlement. 

Submit an application for a free - no obligation appraisal to see what type of offer we receive. The only investment the client has made is a little time to fill out the application and send a copy of their policy. You retain the client and have the opportunity to reinvest the proceeds. Good for the client and for you. 

After all alternatives have been considered and the conclusion is that it is time to lapse or surrender a policy, a life settlement can offer a great value. Please feel free to contact us for a free - no obligation appraisal.

Interesting Study Shows How Seniors Plan To Fund Long Term Care

October 10, 2018

In a study conducted by the University of Connecticut, the majority of seniors plan to fund their long term care through savings and investments. Interestingly, only 3%, the lowest percentage (below reverse mortgages), plan to use life insurance or life insurance settlements. While life insurance settlements are clearly not appropriate for everyone, they can be a good way to fund long term care, if the client no longer wants or needs their life insurance policy. The vast majority of seniors do not know this is an option. In a recent study, 90% said they would have considered a life insurance settlement, had they known about them. If you know anyone who may benefit from a life insurance settlement,  we would be happy to discuss it with you to see if a life insurance ettlement is right for them.

Full article and study:  https://reversemortgagedaily.com/2018/08/27/10-of-seniors-say-theyll-fund-long-term-care-with-reverse-mortgages/

Time to Reassess Life Insurance Policies After Tax Reform

November 26, 2018

Since the passage of the Tax Cuts and Jobs Act last year, the need for some life insurance policies may have been impacted. 

Here is a great article from Kiplinger's Retirement Report about the need to reassess life insurance policies since the passage of the TCJA:


If the time has come that a policy is unneeded or unwanted, a life insurance settlement may be a good option, and can deliver 3 - 5 times the cash surrender value of a policy. Even term policies may be sold.

As a life insurance settlement broker, we appreciate the opportunity to be of service! Please feel free to contact us any time for more information.

Why On Earth Would Anyone Ever Want to Sell Their Life Insurance Policy?

December 18, 2018

Well, the short answer is because they no longer need or want it. But, there is more to it than that.

Policies can be sold through a life insurance settlement. What is a life insurance settlement, you ask? Simply put, it is the sale of a life insurance policy to a third party (usually an investor group) for more cash than any cash value or surrender value in the policy. The investor group then becomes the new owner, continues to pay the premiums, and receives the benefit when the insured passes away. The benefit to the client is that they receive a lump sum payment that is 3 – 5 times greater, on average, than the surrender value of the policy. Typically, the best candidates for life insurance settlements are clients 65 years or older with a policy face amount of at least $100,000, but this is just a guideline.

The numbers are staggering. 500,000 seniors a year lapse their life insurance policies, translating to over $100 billion in face value…that’s billion, with a “b”. That is a lot of value that seniors are giving up, for nothing, each year. Additionally, 90% of seniors who have let a policy lapse would have considered selling it had they known life insurance settlements existed.

Each client is unique, and the reasons they have for selling their life insurance policies vary, but in each case, the client no longer needs or wants their policy. The most common situations include:

*A term policy that is nearing the end of the policy term;

*A policy purchased to cover estate taxes is no longer needed now that the estate tax exemption has doubled;

*A client may have retired, and with mortgages paid off and kids through school, no longer needs the coverage;

*The policy may be becoming too expensive to maintain;

*A business owner sold a business and no longer needs the “key man” coverage;

*One spouse may have passed away, leaving the other with no need for life insurance;

*A rental property or second home has been sold, leaving no need for the coverage; and more....

The reality is that a life insurance settlement may be a good option if your life circumstances have changed and you find yourself no longer needing your life insurance policy. Please consult your financial and insurance professionals when considering a life insurance settlement. After all alternatives have been considered, and it is determined that the policy is going to be lapsed or surrendered, a life insurance settlement can offer a significantly greater value. The evaluation of a life insurance policy is free of charge and you are under no obligation to take any offers received. It can’t hurt to try – but it can hurt not to!

Life Insurance Innovations Include a Valuable 'Out Clause'

January 14, 2019

In this article, M. Bryan Freeman outlines the advantages a life insurance settlement may present to clients.   What I like about it is that the article starts at the beginning, back in 1911 when selling or transferring a life insurance policy became legal....all the way to today and how stringently the industry is regulated.  Hope you find this article helpful:



8 Myths of Life Insurance Settlements - Debunked!

January 14, 2019

Very honored to have an article published in California Broker Magazine about the misunderstandings some people may have regarding life insurance settlements.  Hope this article helps show the facts about why life insurance settlements can be a good option for the 500,000 seniors a year who stop making premium payments and lapse their policies.



What Is A Life Insurance Policy Worth in a Settlement?  Real-life Examples...

January 31, 2019

What is a life insurance policy worth? I get asked this question regularly, and for good reason. The answer is - it depends. It depends on the health of the client, the premiums to be paid into the policy, and the face amount of the policy, to name a few factors. A life insurance policy may be worth nothing...or it could be worth tens of thousands, if not hundreds of thousands of dollars. And, good news, the appraisals to find out are free and no obligation.

I thought you might be interested in the real-life examples outlined in this article:   https://www.thinkadvisor.com/2019/01/25/5-life-settlements-that-didnt-get-away/

3 Life Settlement Trends to Watch in 2019

February 15, 2019

Darwin Bayston, President and CEO of the Life Insurance Settlements Association (LISA), wrote an article with the latest trends in life insurance settlements. More and more capital is flowing into the market, and technology advancements allow for faster transactions. But, one of the trends is more direct-to-consumer marketing, bypassing financial professionals. Please do not miss out on an opportunity for you and your clients. Life insurance settlements convert an asset that is worth nothing today, because the client was going to lapse their policy, into a revenue opportunity for the client and their financial professionals. 

Here is the full article:   https://www.thinkadvisor.com/2019/01/25/5-life-settlements-that-didnt-get-away/

What Happens If We Outlive Our Financial Plans?

March 29, 2019

We are living longer.  That is great.  But, what happens if we live longer than our financial plans.  The article below, Life Settlements Answer the Call to Longevity for Seniors, demonstrates how a life insurance settlement can be a good solution.


What?  I Can Sell My Life Insurance Policy?  Why?

March 31, 2019

Yes, you can sell your life insurance policy! 500,000 seniors a year “lapse” their life insurance policies….walking away with nothing. Why? Because they don’t know they can sell their policy for a lump-sum in cash. All types of policies can be sold, including term policies…yes, even term policies.

Selling a policy is done through a life insurance settlement, which simply put, is the sale of a life insurance policy to a third party (usually an investor group) for more than any surrender value in the policy. The benefit to the client is that they receive a lump sum payment that is 3 – 5 times greater, on average, than the surrender value of the policy. 

So, now, why would anyone sell their policy? The short answer is they no longer want or need it anymore. The reason they purchased the policy 5, 10, or even 20 or 30 years ago, is no longer a concern. Some examples include a term policy that is nearing the end of the term, a client may have retired and their home is now paid off and the kids are now out on their own, sometimes people who purchased a policy for estate tax purposes no longer need it because the estate tax exemption has doubled…whatever the reason, they no longer need the coverage.

90% of surveyed seniors who have let a policy lapse would have considered selling it had they known a life insurance settlement exist. We can help. If you no longer need or want your life insurance policy, we would be honored to be of assistance.

Desert Living Show:  Guest Appearance

April 3, 2019

It was a pleasure to be a guest on the Desert Living Show, introducing how a life insurance settlement can be a good solution for some seniors.  We are passionate about making sure seniors know they have an option, before they drop their life insurance policy.    Here is a brief clip:


Short New Video

June 30, 2019

Thank you to Mario and Jayar at Desert United for creating this great new introductory video for us about life insurance settlements!

New Video

Clients Who Sold Their Policies...and Why

July 3, 2019

So many times people think that a client would only sell their policy because they needed the money.  This is not the case at all.  Here is an article written for Think Advisor about recent clients selling their policy:

4 Clients Who Sold Their Life Insurance Policies

Aging Life Care Association - Creative Planning

July 25, 2019

Very honored to be a guest blogger for the Aging Life Care Association:

A Life Insurance Policy Can Help Pay For Care

Parkinson's Resource Organization - Newest Addition to Wellness Village

August 6, 2019

The Parkinson's Research Organization is an outstanding source for families impacted by Parkinson's Disease.  From caregiver's support groups to online resources, they are "working so no one is isolated because of Parkinson's".  We are honored to be part of their Wellness Village, where many services are available to assist families. 

View Our Wellness Village Page

Can A Life Insurance Settlement Be Creative to Meet a Client's Needs?  Yes!

September 15, 2019

Every client's needs are different.  Many clients wish to sell their entire policy for cash.  But, what if that is not what the client wants, or is not in the best interest of a client?  Can a life insurance settlement be flexible to take care of the unique needs of each client?  The short answer is Yes.  How is this possible?  Here is an article that explains how and gives a real-life example:

A Life Insurance Settlement Lesson In Creativity