Beware Of This Common Experience When Selling Your Life Insurance Policy

In 2023, a South Carolina man owned two similar life insurance policies with face amounts of $650K each.  After some research he decided to sell one of his policies.  

• Age: 73
• Face Amount: $650,000.00
• Health Status: Significant Impairments

Early in the selling process, an offer from a large company that buys policies directly reached 15% of the face amount, about $97,500, and the man sold one of his policies.  This result was certainly better than allowing the policy to lapse and now he could enjoy relief from the premium payments.

A short time later, the same man was curious about selling his other policy.  He ran his case through Windsor’s life settlement calculator, which projected this second policy might secure offers between $208,000 and $468,000. 

However it seemed Windsor’s calculator had delivered both good news and bad news. Though he’d possibly receive double the price for his second policy, he likely could’ve sold his first policy for this amount as well.

After allowing some time to field multiple offers, Windsor was able to secure an offer of $310K, far exceeding the initial policy sale of $97,500, even after paying Windsor a commission on the sale.

By hiring Windsor, the man was able to receive offers from all of the major life settlement companies as well as a private network of buyers, driving the price up for him in the end.

Despite Market Growth, Consumer Awareness Of Life Settlements Remains Low

It’s estimated that about $120 billion worth of qualified life insurance policies lapse annually. 

Policyholders over age 75 allowing their policies to lapse are generally unaware of the life settlement option.  Those that are aware, are likely to attempt selling their policy directly and without representation, due to concerns over broker fees and commissions.  As a result, policies lapse or are sold back for pennies on the dollar.

NYC resident Ted Muller arrived at Windsor Life Settlements after receiving offers from several companies.  He documented his life settlement experience with Windsor after selling his policy for far above his initial asking price.