Life Settlements and Life Insurance Talk
Life Settlements are a hot topic in the life insurance community. Some life insurance agents argue they are bad for the industry because they adversly affect lapse rates. Meaning insurance companies bank on a certain percentage of life insurance policies lapsing...or never ending in a claim. In fact, 97% of Universal life policies never mature into a death benefit. That is money in the bank for insurance companies. While others say life settlements are good for the consumer and should be explored as an option when the situation calls for it. A recent GAO report found that life settlements usually generate 8 times the cash surrender value. So life settlements are often thought of a very consumer friendly transaction. In fact, a handful of states now require insurance carriers to notify consumers that life settlements are an option if the policy is being surrendered or lapsing. One thing is for sure, big money is at stake on either side of the argument and as a result the life settlements debate will rage on for some time.
Some life insurance agents are knowledgeable of life settlements, while others have had little exposure to the process. Many life agents have become de facto life settlement brokers. When in doubt if a life insurance policy should be sold, always contact a licensed life settlement broker to discuss what options are available in the life settlements market.
Some life insurance agents are knowledgeable of life settlements, while others have had little exposure to the process. Many life agents have become de facto life settlement brokers. When in doubt if a life insurance policy should be sold, always contact a licensed life settlement broker to discuss what options are available in the life settlements market.
