What is a Life Settlement?

Did you know you can sell all or part of a life insurance policy?

A life settlement will allow you to receive cash for an unwanted life insurance policy. If you are considering surrendering or lapsing your life insurance policy because you no longer need it, you need to consider a life settlement. Each year thousands of life insurance policy owners like yourself are surrendering or lapsing their unneeded or unwanted life insurance to their life insurance company. You could be leaving tens or hundreds of thousands of dollars on the table.

If you are considering surrendering or lapsing your life insurance policy because you no longer need it, you need to consider a life settlement.

Elderly couple speaking to a financial advisor

A life settlement can convert your life insurance policy to cash now! Life settlements have been around now for more than 20 years. Life settlements have provided billions of dollars of cash more than would have been paid by the life insurance company if the policies were surrendered or lapsed. SGI’s experienced staff is here to help you do just that, turn your unwanted or unneeded life insurance policy into cash through the process called a life settlement.

The life settlement process begins when a life insurance policyowner (life settlor) realizes that they no longer need the life insurance policy they took out years ago. Circumstances change over time, the reason you took the policy out has changed or premiums have just become too expensive. So, before you consider surrendering your life insurance policy to the life insurance company or letting it lapse, call SGI and discuss the option of a life settlement.

Whether you are a life insurance policy owner or financial professional representing your client, contact a member of the SGI staff to assist you with understanding a life settlement and the process of turning your unwanted life policy into cash.

A Few Definitions to Assist in Understanding Life Settlements

Life Settlement Provider
The company that is licensed to perform the entire life settlement transaction. The life settlement provider will purchase your life insurance policy and perform all the necessary steps to do so. They will provide the purchase agreement and all the documentation required to complete the life settlement transaction in compliance with all laws and regulations.

Life Settlor
The life settlor is you, the policy owner, it includes all types of policy owners. Policy owners can be Trusts, corporations, limited liability companies, or any entity that is the rightful owner of a life insurance policy.

Brokers
A broker represents the life settlor in the life settlement transaction. A broker can be a licensed life settlement broker, an insurance agent, a financial professional, a legal professional, or anyone that retains an appropriate license to represent you in the settlement process.

Secondary Market
A market condition whereby a policy owner can sell their life policy to a third party.