“Bill, I heard people can sell their life insurance policies. Do you know anything about that?”
By Bill Rusteberg
Most people let their life insurance policies lapse. Insurance companies count on it. Hundreds of thousands of people pay millions upon millions in life insurance premiums then cancel coverage before a claim is made. Life insurance policies are essentially premium paying policies not so much claim paying policies.
Life insurance policies are an asset. Don’t let your policy lapse, sell it. Bank it.
Years ago we assisted the owner of a furniture store chain who was about to lapse his $500,000 term life insurance policy because it was getting too expensive. He was in his early 80’s. “Bill, I heard people can sell their life insurance policies. Do you know anything about that?”
“No sir, but I’ll check “ I replied.
It didn’t take long to find a buyer. Bank of America paid $50,000 for the policy plus a $10,000 brokerage fee.
The owner kept on living well into his 90’s, beating all expectations. The bank had bet otherwise. But at the end of the day the bank’s return on investment was good but it could have been better.
I think it’s time to get into the Life Settlement business………………..
What took so long?
