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(HealthNewsDigest.com) – A growing number of American seniors are discovering the hidden value in an important asset-their life insurance policies.
Americans aged 65 or older leave more than $100 billion in benefits on the table each year by lapsing or surrendering these policies. One reason is that it can be a problem for many retirees to afford their life insurance premiums, either because of increased rates, decreased income or some personal issue.
One option to consider if you’re ever faced with this dilemma is a life settlement: selling your policy to a third party for an amount greater than its cash surrender value though less than the death benefit. You get a cash payment. The buyer pays all future premiums and gets the death benefit when the time comes.
Before you sell your policy, however, you should talk with your trusted financial advisor or seek out a qualified professional who specializes in life settlement transactions. A good place to start is by contacting a member of the Life Insurance Settlement Association (www.lisa.org) who is either a life settlement broker or provider.
If you decide to proceed with exploring the sale of your life insurance policy, you may want to interview a couple of LISA members by asking questions such as:
1. How long has your firm been in the life settlement business, how many professionals does it employ and how many years of experience does its top management have in the business?
2. Is your firm fully licensed in jurisdictions where it conducts business and has it ever been convicted of violating any life settlement regulations?
3. Has your firm ever been sanctioned by LISA for violations of its Code of Ethics and Standards of Professional Conduct?
4. While acting on my behalf, will you provide me with total disclosure of all information and interaction among providers with whom you are negotiating a sale price for my policy?
5. How is your compensation determined, does it come out of the proceeds of selling my policy and who pays it? Will I know if there are any other parties to be compensated for selling my policy and how much their compensation will be?
6. Will you keep me informed about the progress of the sales transaction at specific times?
Perhaps the most important consideration is feeling comfortable about doing business with a firm that you are confident is working in your best interest, possesses a high level of integrity and is one you would recommend to a friend.
Learn More
For further facts, or to find a life settlement professional who can help you look into this option and see if it makes sense for you, call (800) 664-9024 or visit the LISA website: www.lisa.org. To view a video on this issue, go to www.lisa.org/options.
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