Senior Life Insurance Policies

It is a little-known fact that many seniors’ Life Insurance policies can be sold for cash on the secondary market, much like mortgages are bought and sold.  The secondary market value or sale price has little to do with the “Cash Surrender Value” assigned by the insurance company, and is often very much larger than that surrender value.  In fact it is common for seniors’ Term Insurance policies, which have no traditional cash value, no surrender value and are not even listed as an asset on financial statements to have a very substantial fair market cash value!  Many seniors have sold their policies and used this cash to prepay premiums for more appropriate life insurance products, to purchase annuities, to fund investments, to buy long-term care policies or to seek alternative medical treatments.

There are currently no buyers of policies under $50,000 and all policies have to be over two years old to avoid contestability.   Essentially, Life Insurance Policies are valuated or ‘appraised’ based upon the combination of several factors.  The main factors are the face value of the policy, the age of the insured, the health of the insured, the type of Life Insurance Policy and the strength of the company that issued the policy.

After receiving an appraisal of the Life Insurance Policy’s cash value, a senior may consult with their Insurance Agent, Financial Planner, Estate Attorney or CPA to see if it is to their advantage to sell the policy or to simply continue to make premium payments to keep their current policy in force.  If the senior wants an appraisal of their policy, they do not have to submit to any physical examination or doctor visits.  Instead, they authorize their doctors to release their medical records, and supply a copy of their policy for review.  The entire process typically takes six to seven weeks depending upon how quickly information is released.  If the senior does wish to sell the Life Insurance Policy at that time, and funding takes place, there is a fifteen day period during which the senior can still change their mind about selling the policy.

Rick Foster has owned a licensed financial business dealing with the secondary markets since 1992 including the Senior Life Settlement Secondary Market.  Mr. Foster is a Master Agent of an alliance whose principals have been involved with the purchase of Life Insurance since 1993 and markets Life Insurance Policies to all of the reputable buyers in the secondary market.  This creates a competitive bidding process, which normally elicits the highest possible sale price for the policy holder.  For more information, or free non-binding cash value appraisals of Senior Life Insurance policies, you can contact Mr. Foster at (407) 522-0133 or e-mail rdfoster@att.net.  Insurance, Legal and Financial Professionals are welcome.