Why should my client consider selling their life insurance?

There are many reasons why people want to sell their life insurance policies. Some of the more common reasons to sell a life insurance policy include:

• The premiums are no longer affordable.
• The beneficiary is deceased or the policyholder no longer has a need for the policy.
• Children are independent.
• The policyholder holds multiple life insurance policies and wishes to sell one or more.
• Funds are needed to pay for unexpected medical expenses.
• To replace an individual policy with a more affordable and efficient survivorship policy, a long-term care policy or to obtain funds for long-term care.
• To upgrade to a more modern, efficient policy that better serves their need.
• Changes in the policyholder’s estate eliminate the need for the policy.
• A key-person policy (designed to protect a company from the financial loss of an executive) is no longer necessary either because the company has closed or the individual is no longer integral to the business’ success.

Regardless of individual circumstances, anyone considering a life settlement should first discuss it with his or her life insurance, financial and legal advisors. The expert team at Habersham Funding is available to assist you or your advisors with any questions.

Is my client a candidate for a life settlement?

It is estimated that 20% of life insurance policies owned by individuals age 65 and over have a fair market value in excess of their cash surrender value. Generally, candidates for life settlements are:

• 65 years of age or older
• Own a policy with a face value of $100,000 or more
• Have owned that policy for more than two years

In addition to life settlements, a second type of transaction called a viatical settlement may be appropriate under certain circumstances. Viatical settlements are for policyholders of any age who are seriously ill.

For more information on settlements, give Habersham Funding a call at 404-233-8275 or 888-874-2402 to speak with a case manager about your individual circumstances.

How much money will my client receive for my policy?

The purchase price of a life insurance policy is based on a number of variables including the age and health status of the policyholder, the face value and type of insurance, and the amount of premium. For a confidential evaluation of your policy and a preliminary market assessment, contact Habersham Funding at 404-233-8275 or 888-874-2402 to speak with a case manager.

How do I know if my client’s policy will qualify?

Most types of individual life insurance policies (and many group policies) qualify for a life settlement as long as they are at least $100,000 in face value and are at least two years old. Habersham Funding can work with virtually every policy type including term, whole, universal, variable, group or joint survivorship. Policies may be owned individually, or through corporations, foundations, trusts, non-profit organizations or businesses. In some states, under certain circumstances, a policy less than two years may qualify for settlement.

What types of life insurance policies can be sold?

Habersham Funding can work with virtually every policy type including term, whole, universal, variable, group or joint survivorship. Policies may be owned individually, or through a corporation, foundation, trust, non-profit organization or business.