Clients, and their advisors, often have misperceptions about how life insurance settlements work and who can qualify. Here are the top 5 myths, and the reality:

1) Only permanent policies can be sold - the reality is term policies are often sold.

2) Policies with a lot of cash are sought after - quite the opposite is true. Lower cash surrender values are better. In fact, term policies are highly marketable.

3) Life insurance settlements are only for the very ill - not true. Buyers routinely will purchase the policies of clients that are fairly healthy.

4) The face amount of the policy has to be large - incorrect. Policy face values of $100,000 or higher are preferred.

5) Clients have to sell their entire policy - clients can sell part of their policy and retain a portion for themselves, especially if it is a term policy that is still convertible. If it isn't, sometimes a retained death benefit is possible.

The bottom line - the life insurance settlements market is flexible to take care of clients. If you are an advisor with a client that may not want or need their life insurance policy any more, please don't let them lapse or surrender their policy. A life insurance settlement can be a better financial solution for them - and for you. Contact me. We're here to help.