HomeWhat is a Life Settlement?
A life settlement is a sale of an un-needed or under-performing life insurance policy for an amount that exceeds the cash surrender value, but is less than face value. It's a unique opportunity to extract the current fair value of an existing life insurance policy and re-use those funds for whatever financial needs the owner might have. The marketplace is typically available to seniors 70 and older.
Until recently, the owner of an un-needed or unwanted life insurance policy had only two options:
- 1. They could sell the policy back to the institution that issued the policy for its cash surrender value (if any) or
- 2. Allow the policy to lapse
By using the services of a life insurance settlement broker, a client can now obtain the maximum market value in the secondary market which has matured into a multi-billion dollar industry.
Each policy is marketed to a process that results in fair market value for clients by leveraging professional life settlement providers, who purchase policies and aggregate them for their investment opportunity. ULIS serves as a broker to existing policies and leverages markets in a national environment. When properly employed, a life settlement offers an opportunity for a client to benefit from no-longer-needed or unwanted life insurance. The majority of the secondary market transactions executed through a broker like ULIS, results in the sale of the product to a capital source that provides significantly higher liquidity to the seller.
88% of Universal Life Policies never result in a death claim. They are either surrendered, or worse, allowed to lapse.