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SURRENDERING YOUR LIFE INSURANCE POLICY?
CONSIDER THESE IMPORTANT FACTS FIRST!
As a policy owner of a cash-value life insurance policy (such as universal life, variable life, or whole life), you can terminate your life insurance coverage and receive the policy's cash surrender value or other non-forfeiture values. However, before making any decisions, it is important to be aware of the following:
1. Surrender Amount: If you decide to surrender your insurance policy, the life insurance carrier will pay the surrender amount due to you. However, this amount may be taxable, and you may need to report it as income on your tax return. Understanding the potential tax implications and consulting with a tax advisor before proceeding is essential.
2. Coverage Termination: Surrendering your life insurance policy means you will no longer have life insurance coverage. Consequently, all rights and riders in the contract will be terminated. If you still need life insurance protection or have dependents who rely on the coverage, there may be better options than surrendering the policy.
3. Consider All Alternatives: Surrendering your life insurance policy is a significant decision that should not be taken lightly. For example, you can take out a loan against the policy’s cash value or use the life insurance policy for other purposes with a Life Settlement. Selling your life insurance policy could help with retirement plans, long-term care, or anything else you need the cash for. Before proceeding, explore all your alternatives.
Surrendering your life insurance policy is a complex decision that requires careful consideration of all factors. If you are considering surrendering your life insurance policy for cash, one alternative that may be beneficial to qualified policyholders is selling the policy for more than the cash surrender value through a life settlement. A life settlement allows policyholders to access a secondary market for life insurance policies where state authorized financial institutions compete to purchase policies as an investment vehicle. Qualified policyholders over the age of 65 or who have been diagnosed with a life-threatening illness may be eligible for a cash offer from the life settlement option.
When considering a surrender of life insurance, it's essential to know that there are other options available, such as life settlement, that could provide more value. If you decide to pursue a life settlement, it's recommended to work with a reputable life settlement broker like Welcome Funds. Our life settlement auction platform enables policy owners to sell their life insurance policy to the highest bidder. When buyers compete, policy owners win, and they receive a cash payout that is often significantly higher than the surrender value. Regardless of your decision, it's important to take the time to fully understand all of your options before making a final decision.
An Alternative to a Surrender of a life Insurance Policy
One alternative that may be beneficial to qualified policyholders is selling a policy for more than the cash surrender value. This option is called a life settlement. Qualified policyholders over the age of 65 or who have been diagnosed with a life-threatening illness, may be eligible for a cash offer from the life settlement option. A life settlement allows policyholders to access a secondary market for life insurance policies where state authorized financial institutions compete to purchase policies as an investment vehicle.
Welcome Funds is Licensed to Help Policyholders Sell Their Life Insurance Coverage
Welcome Funds has been helping policyholders secure cash offers from the secondary market for life insurance since 2000. We are authorized throughout the nation to represent life insurance consumers as their life settlement brokers. Welcome Funds will submit your policy to our auction-based platform, where state authorized buyers compete to purchase life insurance policies for the highest cash offer. Our clients have been paid more than $1 Billion more than the cash surrender value offered by the life insurance company.
If you would like to find out if you or your loved one qualifies for a life settlement, please complete our quick Life Settlement Qualifier. Contact us today for a free consultation! Our process is confidential, and there is no obligation at any time!
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.
