Converting An Unwanted Life Insurance Policy Into Ca$h

Life Annuities

Do You Own A Life Insurance Policy That You No longer Need or Want?

It is possible that you may be able to can get a CASH settlement in excess of the

current cash surrender value by selling your policy in the secondary market to an


Reasons To “Sell” A Policy:

Family Situations


Estate Reduction

Estate Tax Revision

Business Was Sold

1035 Exchange

Drain On Income

Divorce – Separation

Death of A Spouse


Declining Health

Non-Performing Policy

Wealth Planning

Work Related Changes

Qualifying Types Of Life Insurance:


Whole Life

Term (Convertible)




Key Man (business related)

Who Is A Qualified Candidate?

Mature men and women over age sixty-five years of age who have an existing life

insurance policy and whose circumstances have changed since purchasing the policy

originally may qualify for a purchase and sale of their policy. Financial advisors view

this as a powerful and innovative wealth and estate planning tool.

How Much Is A Policy Worth?

There are a number of variables that determine the offered amount for a policy,

including the following;

* Age (of course) * Premium cost

* Client’s Health * Type of Insurance

* Death Benefit * Insurer Rating

* State of Residence *Underwriting criteria

Note: As a general rule the most heavily weighted items are the age of the insured

(the younger a person is a lesser current value will apply), the health condition, and

the amount of the premiums that apply are the primary determinants in arriving at

the price offered for a policy.

What benefits are there for the insured?

First – there is absolutely no cost for a policy appraisal

Offers liquidity to clients

Eliminates the insured having to pay premiums

Funding for ‘Alternative’ products that fit current needs

Offers an innovative and better solution for current status

Provides another alternative for divesting policies that are no longer needed or


(As opposed to letting policies lapse or accepting the cash surrender value

established by the originating life insurance company.)

How Does selling A Policy Work?

1. Policy owner (or professional financial advisor) requests and authorizes a policy


2. Policy buyer obtains needed documentation, including policy information and

physician statements, etc.

The highest possible offer is obtained in the secondary market.

The offer is submitted to the insured for acceptance.

If accepted, a contract is sent for signatures.

The change of ownership is completed and funds are released to the previous owner

(usually the insured).