Selling a life insurance policy

The uses for the proceeds of a settlement transaction are as varied as the changing needs and wants of consumers. However, the conditions under which a life settlement opportunity is most likely to make sense are fairly easy to identify. The following is a partial listing of the situations in which you may find that the life insurance settlement option represents a meaningful alternative:

1. When a Policy Owner no longer needs coverage.

2. When a change in business ownership makes a policy obsolete.

3. When a Key Person leaves the company, making the policy unnecessary.

4. When premium payments have become burdensome.

5. When a change of policy type is required to address current objectives.

6. When the Policy Owner wishes to give the policy to a nonprofit organization.

7. When changes in tax laws make trust-owned policies unnecessary.

8. When a Policy Owner needs to raise cash for other purposes.

9. When a business fails and a resulting bankruptcy requires that assets be liquidated.

10. When a nonprofit organization owns a policy insuring the life of a board member, key donor, or other benefactor, but the donor no longer wants to contribute funds to pay premiums.