Life insurance is one of the most overlooked assets that people own. In fact, it is estimated that over $57 billion of life insurance policies lapse every year by owners over the age of 70. What many people don’t know is that there is a hidden value well beyond what is reflected in the cash value of the policy. This is due to the flourishing life settlement market.
What Is a Life Settlement?
Life settlements can allow policy owners to sell life insurance policies that no longer meet their needs for an amount greater than the policy’s cash value. Often times that amount is substantial; a recent study suggests that policy owners were receiving 4 times their cash value on average. The proceeds are typically used to pay down debt, fund health care, support charitable causes or for other lifestyle and business needs.
Who Should Consider a Life Settlement?
While there are exceptions to every rule, the typical candidate for a life settlement is someone over the age of 65 with a life insurance policy of $250,000 or more. All types of life insurance, including term, may have a hidden value. If you have a policy you no longer need, want or afford, having that policy appraised is the next logical step. In many cases, there are even options to retain some of your death benefit without having to pay any future premiums.
Kelleher & Buckley, LLC works with life settlement experts who can provide a complimentary assessment. Contact Andrew Kelleher, David Buckley, Bob Holland or Linda Fine, or one of our 25+ attorneys at (847) 382-9130 to find out what your policy may really be worth.