What is it?
A life settlement is when a life insurance policy owner cashes in his policy by selling it to an investor rather than the company that sold it to him or her.
What is in it for you?
Consider it a hidden asset. Depending upon your age and life expectancy, the assignment of your life insurance policy can generate two to four times the cash you might receive from your life insurance carrier.
Who would buy your life insurance policy and pay more than face value?
Institutional investors see life insurance policies as a safe and higher return option than government bonds. They give the policy holder cash, take over payment of the premiums and collect the benefits when you die.
Whose policy is most valuable?
The policy buyers, known as “funders” or “providers,” prefer a lower, ongoing premium than a fully funded or paid up one. There are markets for whole life and term insurance policies, but funders prefer a universal life insurance policy from an individual with a life expectancy of 15 years or less.
So what is Richard S. Bernstein and Associates’ role for you the client?
We seek bids from a number of “funders” and create an auction for the policy to be sure you are getting a top dollar offer. If you agree to the bid, we expedite the sale. Contracts are signed, the owner of the policy is changed, and you are paid.