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WHAT IS ABSOLUTE ASSIGNMENT?
Absolute Assignment is a legal instrument that allows the owner of a life insurance policy or other valuable assets to transfer all rights and ownership of the asset to a designated assignee. This transfer of ownership is comprehensive and unrestricted, giving the assignee complete control and authority over the asset. Unlike a conditional assignment, which may have specific conditions attached, an absolute assignment represents an unqualified transfer of ownership.
Absolute assignment can be used not only in the context of life insurance but also for transferring ownership of other valuable assets such as real estate and securities. It involves a meticulous adherence to legal requirements and procedural details to ensure the validity and legality of the ownership transfer. Seeking guidance from legal and financial experts is essential to ensure a smooth and legally sound execution of the absolute assignment process.
Absolute Assignment in Life Settlements
When considering selling a life insurance policy, individuals have the option to engage in a life settlement, wherein the policy is sold to institutional buyers in the secondary market. This process involves applying to various licensed buyers who compete to offer the highest bid for the policy. An experienced life settlement broker can facilitate this auction-style bid process, ensuring that policy owners receive the best possible offer for their policies.
Why Seniors Choose Welcome Funds for Life Settlements
Welcome Funds is a nationally licensed life settlement broker with a reputation for helping senior policyholders achieve the best possible results from their life insurance policies. Here’s what sets us apart:
- Auction-Style Bidding Process: Welcome Funds creates a competitive marketplace where institutional buyers bid to offer the highest payout for each policy.
- Fiduciary Responsibility: Our team acts solely in the best interests of policyholders, providing transparency and expert guidance throughout the entire process.
- Expert Representation: With extensive experience in the secondary market for life insurance, we handle every detail of the transaction, including the absolute assignment.
A Real Life Example for Seniors
Welcome Funds Life Settlement Case Study:
- Policyholder: Don, age 78, owns a $2,000,000 Universal Life policy with Lincoln National, which he purchased in 2017. Due to financial constraints, Don could no longer afford the $104,330 annual premium to maintain the policy.
- Goal: Avoid surrendering the policy for a minimal payout and instead explore options to generate a meaningful cash return.
The Process:
- Don asked his financial advisor to send him surrender paperwork, as reducing the death benefit wasn’t an option due to minimal cash value in the policy. The advisor suggested exploring a life settlement as an alternative.
- Don contacted Welcome Funds to begin the Life Settlement Qualification Process, which included a complimentary consultation and policy appraisal.
- Welcome Funds marketed the policy to institutional buyers through our auction platform.
- After competitive bidding, Don received a final offer of $250,000, far exceeding the policy’s surrender value of just $4,811.
- Don finalized the transaction by completing an absolute assignment and transferring ownership of the policy to the buyer.
The Result: Don received a $250,000 payout, transforming what would have been a minimal surrender value into a substantial cash asset. This allowed him to regain financial stability without the burden of unaffordable premiums.
Explore Life Settlement Options With Welcome Funds
Seniors seeking financial flexibility and greater value from a life insurance policy can explore the benefits of a life settlement with Welcome Funds. The process is simple, confidential, and commitment-free.
- Complete a Free Life Settlement Qualifier online.
- Call our toll-free number at 877.227.4484 to speak with a client advocate.
Welcome Funds is dedicated to helping senior policyholders navigate their options, ensuring the highest possible value while acting in their best interests every step of the way.
LIFE SETTLEMENT BLOG
Direct Life Settlement Buyers vs. Welcome Funds – Advisor Beware!
Posted: by John Welcom
Welcome Funds has the privilege of working with numerous financial advisors and wealth managers – and have done so for two decades – some who exclusively focus on servicing high net worth clients. One such advisor who is active in the life settlement market — and already understands the value he can create for his clients — had historically negotiated directly himself with two or three leading buyers of life insurance policies. He thought that simply engaging with mor...
How to Sell Your Life Insurance Policy for $4,743,000 Instead of $275,485?
Posted: by John Welcom
Mr. Williams purchased $10 Million in life insurance coverage in 2001 to provide his family with financial security. Over time, his financial priorities changed: his wife passed away, his children became financially independent, financial burdens arose and the estate tax exemption increased substantially.
Suitability of Life Settlements
Posted: by John Welcom
Traditionally, estate planning advisors counsel their high net worth clients to obtain life insurance policies with large death benefits. The strategy is simple: create a vehicle for heirs to receive tax-free income at the time of an insured’s passing so sufficient funds are available to pay large estate tax bills when assets are inherited.
What is the Most Suitable Exit Strategy for Life Insurance?
Posted: by John Welcom
All eyes in the life insurance agency and the financial advisory world have been on New York, where in the summer of 2019, the New York State Supreme Court paved the way for implementation of Insurance Regulation 187. This rule imposes a new standard for agents and brokers when issuing a recommendation to a client regarding an annuity or life insurance product.
How to Get the Highest Life Settlement Offer
Posted: by John Welcom
When you decide to sell a valuable personal asset, you usually want to obtain the highest purchase price for that property. It is sound business sense. However, how do you truly know when you have reached the point of accepting and securing the most desirable offer?
Understanding the Fair Market Value of a Life Insurance Policy
Posted: by John Welcom
When a professional advisor identifies a life insurance policy that a client no longer needs or wishes to maintain, he should ask, as standard protocol, whether that policy may have value in the secondary market. If so, the client may be able to sell the policy in a life settlement transaction, enabling him to receive a higher cash payout than he otherwise would obtain by lapsing or surrendering the policy back to the insurance company.
The Power of a Life Settlement Auction
Posted: by John Welcom
Professional advisors with clients who no longer need or wish to maintain a life insurance policy have options when exploring the secondary market. Many advisors prudently rely on a licensed life settlement broker to assist them in the sale of the policy and with all aspects of the transaction. However, there is still a large number of professionals persuaded to work directly with only one buyer, called a life settlement provider.
Rebuttals to the “Direct Buyer” Model for Life Settlements
Posted: by John Welcom
Most professional advisors who explore the potential sale of an unwanted life insurance policy on behalf of their clients will rely on the assistance of a licensed life settlement broker. Life settlement brokers represent the policy owner in the transaction and have a duty to act in their best interests. Most notably, the broker’s and client’s goal is aligned: to sell the policy for the highest price possible.
Carrier Resistance To Life Settlements: Clients Need To Know They Can Sell Their Policies
Posted: by John Welcom
Consumers who sell their life insurance policies in the life settlement market receive as much as seven times more money than they would have received by surrendering their policies back to the insurance companies. Seven times! However, an estimated 9 out of 10 policies are allowed to lapse before paying a claim, according to the Life Insurance...
The Danger of Trying to “Time the Market” for Life Settlements
Posted: by John Welcom
Most investors in the stock market understand the danger of “market timing” — trying to choose the right day to buy a stock when the price is low and sell it when the price is high.
