Term Settlement

[lifesettlementadvisor]

[FONT=&quot]How one producer made $25,000 on a $500,000 term conversion/life settlement[/FONT]

[FONT=&quot]Many agents have sold and still sell convertible term policies as a cost effective way to protect an insured's assets. As time goes on, many clients elect not to convert these policies as the annual premiums balloon. The result is another lapsed policy and victory for the large insurance company. Most term policies are convertible and can be good candidates for a settlement .[/FONT]
[FONT=&quot] A typical $500,000 convertible term policy on a 75 year old with an annual premium of $20,000, combined with a life settlement, can earn an agent a double commission. By converting the term policy into a permanent Universal Life Policy and selling the policy to the settlement market, the agent earns three commissions; one for the conversion, the annual renewals, and one for the settlement. In the example above, the insurance commission was $20,000, annual renewals, and the settlement commission was $5,000. The client walked away with $40,000 for an asset once thought of as worthless, or illiquid. [/FONT]

 

[JRoot]

I just got an email from my GA about "early" life settlements. Have you heard of these?

Basically this company is buying term policies from people ages 56-70 with LE of 20 years+. It comes out to be a return of premium for those who would of let their policies lapse.

 

[myinsurebiz]

If I wasn't focused on my product offering - this would likely be the market I would approach . . .

Tom

 

[lifesettlementadvisor]

yes i have heard of that. They are buying the policies at a very discounted rate...basically just enough to pay back the senior for what he has paid in. They hold it till about 70 and then convert it and resell it on the life settlement market.