Exploring life settlements, a financial strategy dating back to the early 1900’s, as a means to make a better life settlement decision. The life settlement market is booming. Qualified policyholders should not settle for low offers.
Life settlements have been around for over 100 years. The industry has roots that stretch back all the way to a Supreme Court case in the early 1900s, the first life settlement case on record. The honorable Judge Oliver Wendell Holmes Jr. ruled over “Grigsby v. Russell” and included a written ruling that stated: “So far as reasonable safety permits, it is desirable to give to life policies the ordinary characteristics of a property. To deny the right to sell except to persons having such an interest is to diminish appreciably the value of the contract in the owner’s hands.”
In other words, this case, and many other judicial rulings over the years have made clear that a life insurance policy is an asset just like any other asset. You as the owner of that asset have a right to liquidate that asset at any time. This particular case is cited in the rare event that anyone legally challenges a life settlement.
Grigsby v. Russell is considered a a landmark U.S. Supreme Court case because it validates life settlements as a legitimate marketplace. In 1911, a man named Burchard bought life insurance policy. After making only two premium payments, he found himself needing a vital surgical procedure. To pay the medical bills, Burchard sold his life insurance policy for $100 to his doctor, Grigsby.
Some time later, Burchard eventually passed away. Shortly there after the Burchard’s family sought to recover the insurance payout from its beneficiary, Dr. Grigsby.
The SCOTUS ruling has been fundamental in helping people today realize the often-hidden benefit of life settlements.
Despite the historical precedent for such a transaction, the option to seek a life settlement hasn’t always been on the table for seniors. Typically, insurance companies provided policyholders with only two options:
Life insurance companies have a vested interest in these two options, but now, thanks to increased regulation and consumer education, you have a third option, one that allows you to receive a larger sum than the cash surrender value, while still freeing yourself up from an unwanted policy or costly payments.
Today’s life settlements grew in part out of viatical settlements. These end of life settlements became commonplace in the 1980s as the epidemics of AIDS and cancer led many young terminally ill policyholders to find a way to liquidate their assets to pay for end of life care or final celebrations before passing.
Now, thanks to an increase in regulation in the life settlements market, healthy seniors who still may have many years left to live can take advantage of this opportunity to free up financial resources and get out from under the thumb of life insurance companies.
Each year, America’s senior community lapses an estimated $120 Billion dollars worth of qualified life insurance policies simply because they are unaware of the life settlement option.
Just like any other asset, a life insurance policy can be sold by one party to another for cash. So very simply, a life settlement is a transaction in which a life insurance policy is sold by one party to another.
The purchasing party is an investor willing to pay the policyholder a fee to become the beneficiary of the policy while assuming responsibility for paying future premiums.
As part of the purchase transaction, the investor assumes responsibility for paying all future premiums required to keep the policy enforced. When the insured passes away, the investor receives the death benefit.
So a life settlement can be an unexpected way to liquidate assets, plan for your family’s future, and respond to late life changes. The process can seem confusing at first, but at Windsor Life Settlements, we’re committed to clear explanations of your options so that you and your family can gain the most benefit with the least risk, and take advantage of a life settlement market that’s currently on the rise!
When we refer to a “life settlement,” we’re simply referring to the transaction that can occur between an original life insurance policyholder and a purchasing party.
The purchasing party is an investor willing to pay the policyholder a fee to become the beneficiary of the policy. This fee is typically more than the existing cash surrender value of the policy, but less than the policy’s full death benefit. Following the transaction, the investor assumes responsibility for paying future premiums, and, when the insured passes away, the investor collects the death benefit on the life insurance policy.
When done well, a life settlement transaction benefits both parties involved and ensures that you don’t leave any assets on the table as you prepare to enjoy your golden years.
In the last few years, Windsor has seen a rise in demand for life settlements coincide with an overall rise in the market. As of 2015, a total of 45 states had some form of life settlement regulation on the books. This increased oversight means greater transparency and protection for consumers and increased options for seniors who may still be perfectly healthy, but want to liquidate their assets for a variety of different reasons.
This shift has led to more seniors looking into life settlements as an option, which means that there’s more information than ever out there about how—and why—to pursue a life settlement.
Here are just a few scenarios that may lead you to consider a life settlement:
No matter what your current situation, it’s clear that a life settlement can help you take control of your finances and prevent losing years of premium payments to the insurance companies’ fat bottom line.
There are a number reasons people ask “Why sell your life insurance?” As the market has changed over the years, more seniors are looking to life settlements to help them manage a major life change, from divorce to retirement, to the joy of seeing your children achieve their own financial independence. Instead of simply accepting what your insurer offers for the cash surrender value of your policy, you can work with an advisor at Windsor to generate substantial liquid assets, right when you need them the most.
The market has grown in part due to greater regulation and consumer awareness about how life settlements can help seniors in the following situations:
The benefit of a life insurance policy to the loved ones you leave behind is quite a gift indeed, but if you no longer need to this benefit or your circumstances would improve if you had access to those resources right now, then a life settlement will likely be an excellent fit.
In addition, you can also use the gains from a life settlement to give your investment portfolio a boost. On the other hand, if your current assets are stretched, liquidating a life insurance policy will give you a comfortable cushion, while helping you spend down assets to qualify for Medicaid.
Life settlements offer benefits no matter what your financial situation, but before you move forward, take the time to ensure that you qualify for this opportunity.
The best way to begin your life settlement journey is to work with a trusted advisor who will respect your privacy and your autonomy while working with trusted buyers to get you the greatest possible payout.
Insurers have traditionally given policyholders few options, and often offer a low “surrender” value on a policy. Windsor Life Settlements offers policyholders a clear process to convert their life insurance policy into a more lucrative payoff. As a life insurance broker, Windsor Life Settlements has many experienced members who will offer one-on-one counseling throughout the process. Once you contact Windsor Life Settlements, we will walk you through the process step-by-step in order to answer all of your questions. As a general guideline, there are some requirements you typically must meet in order to qualify but feel free to contact us to review your eligibility:
Engaging in any major financial transaction involves some level of risk, but you should know that increased regulation in this industry means that you should be provided with clear, transparent, ethical guidance at every turn. Before committing to this process, consider the following concerns and weigh your own personal sense of comfort and risk:
At Windsor Life Settlements, our goal is to get you the maximum value for your life insurance policy. Our knowledge of the life settlement market and our relationships with investment groups make for a quick and thorough evaluation of your policy. Transparency is important in all financial matters, which is why Windsor Life Settlements will keep you up-to-date on all the details of the sale and transfer of your policy. You can also rest assured that we will follow industry best practices to keep your private financial and medical information secure.
To find out more, contact one of our principals at 1 (888)-994-6376, and get started today!