Life Settlements

A life settlement is the sale of an existing life insurance policy that gives the policy owner a cash settlement in excess of the current policy cash value. Life Settlements provide policy owners with an exit strategy from unwanted or unneeded life insurance policies, while providing financial professionals with opportunities to better maximize their clients’ financial objectives.

Addressing A Legitimate Need:

CFM believes that the death benefit offered by a life insurance policy is valuable and that life insurance policies should continue to protect an insured’s family or business in most instances.

However, circumstances can and do change, and someone who purchased a policy to provide life insurance protection may no longer need or want the policy. Here are several reasons why an insured might consider a Life Settlement:

  • The policy is in danger of lapsing
  • The premium payments have become too expensive
  • The policy is simply not performing as desired or needed
  • The insured’s health has changed
  • The policy owner has had changes in their personal circumstances (divorce, retirement, death of a spouse or a beneficiary)
  • Children have become financially independent
  • There may have been changes in business circumstances (sale or purchase of a business, or a decreased need for a key person policy)
  • Wealth accumulation by the policy owner obviates the need for the policy
  • The client has a need for additional life insurance coverage or to fund Long Term Care needs
Evaluate a PolicyTools

CFM Email Signup Form

Please enter your email address in the field below and click the signup button if you would like to receive regular info on Life Settlements by email.