What is a life settlement?
A life settlement is a financial transaction in which a policyowner sells an unneeded life insurance policy for more than its surrender value.
But life settlements represent much more than an exit strategy for an unneeded life insurance policy. With a life settlement, consumers have the option to sell their life insurance and realize significantly more value than they would have received from a lapse or surrender.
What types of life insurance policies can be sold?
Most life insurance policy types qualify, including universal life, whole life, adjustable life, variable life, survivorship, joint first to die, portable group life (if assignable) and even term life (if convertible).
Can I sell a portion of my life insurance policy?
Yes, it is possible to sell your policy, eliminate premium payments and retain a portion of the death benefit.
How can a life settlement help me?
For qualified policyowners, a life settlement is a valuable alternative to surrendering a policy that is no longer needed or is no longer affordable.
For example, you could supplement your retirement income, fund a long term care policy, cover unexpected medical expenses or repay a debt. You could use the cash payment for anything you choose. There are no restrictions.
If you still need some coverage and qualify, you may have the option to retain a portion of your death benefit and eliminate your ongoing premium payments.
How much could I expect to receive if I sell my life insurance policy?
Policyowners who choose a life settlement typically receive on average more than four times what they would receive from surrendering their policy back to the life insurance company, or letting their policy lapse (London Business School Study, June 2013). Generally, the size of the payment is determined by your age, type of insurance policy, the premiums and your health.
Would I qualify for a life settlement?
If you are 65 or older or have had a change in health and the face amount of your life insurance policy is at least $100,000, your policy may qualify for a life settlement.
The simplest and quickest way to learn whether you are eligible is to complete the Coventry Direct Life Settlement Qualifier. Just click below to get started.
Can I use life settlement funds any way I want?
Yes. There are no restrictions on the use of the proceeds. The majority of policyowners—over 75%—use the money to fund long term care insurance, cover medical costs and/or supplement their retirement income. The choice is yours.
Is my information kept confidential?