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Please educate me...As far as my knowledge goes is that a life settlement can be done only on a Cash Value policy. You talk of buying clients convertible term policies. How does the client recieve something for nothing...referring to no cash value in a term policy.
I know that policies have something called an interpolated terminal reserve. It has more to do with the insured's current life expectancy and policy costs than cash value from my understanding.
For instance, if you were in the 3rd year of a 30-year level term policy for $1,000,000 and the insured was very terminally ill and under hospice care, you could easily find a buyer for a lot of money. The cash value wouldn't matter.