Your cash value is running low
As you age, the cost of insurance inside a universal life policy rises and can drain the cash value. If your statements show it shrinking, selling the policy may return far more than surrendering it.
Life settlements
Universal Life
Universal life is the most common type of policy sold in a life settlement. If you no longer need or want yours, it may be worth far more than your insurance company will pay you to surrender it.
Overview
Universal life is a flexible type of permanent life insurance, with adjustable premiums, a death benefit and a cash value that earns interest. That flexibility makes it popular with buyers. It’s the type of policy most often sold in a life settlement, which means there’s a real market for yours.
When a universal life policy no longer fits your plans, surrendering it isn’t your only way to cash out. The insurance company pays only the cash surrender value, often a small fraction of what the policy could sell for. With a life settlement, you sell the policy to a third-party buyer for a lump sum, and they take over the premiums.
Life Settlements Now reviews your policy, explains what it may be worth, and presents it to multiple buyers to find the strongest offer. There’s no cost for the review and no obligation to sell.
Symptoms
When to consider cashing out
Premiums are going up
Many universal life owners are asked to pay more each year just to keep coverage in force. If the payments no longer make sense, a settlement lets you stop paying and still walk away with cash.
You’re about to surrender the policy
Before you sign a surrender form, find out what the policy could sell for. Industry figures for 2023 put the average life settlement at about six times the cash surrender value.
You no longer need the coverage
A paid-off mortgage, grown children or a sold business can make the policy unnecessary. Selling it turns that unneeded coverage into money you can use now, for retirement, medical costs or anything else.
Our process
How cashing out works
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Tell us about your policy
We start with your universal life policy, why you’re thinking of cashing out, and what you’d like the money to do. It’s a no-pressure conversation with no obligation.
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We review what it may be worth
We look at your premiums, cash value, face amount and health picture, the main factors buyers weigh, and explain whether the policy is likely to qualify for a settlement.
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We find the strongest offer
We present your policy to multiple licensed buyers so they compete for it. You see every offer and how it compares with your cash surrender value.
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You decide whether to sell
If you accept an offer, we guide you through the paperwork, and the funds are released once ownership transfers. If you don’t, you owe nothing and keep your policy.
Scope
What the service covers
The policy review is free. If your policy sells, our compensation is disclosed in writing before you sign anything.
Request service- Free policy review
- Marketing to multiple licensed buyers
- Cash value and premium review
- Offer review and comparison
- Policy qualification guidance
- Guidance through closing paperwork
What is universal life insurance?
Universal life is a flexible type of permanent life insurance with adjustable premiums, a death benefit and a cash value that earns interest. It’s the type of policy most often sold in a life settlement.
Why would a buyer pay more than my cash surrender value?
The surrender value is set by your insurance company alone. In a settlement, buyers base their offer on the death benefit, the premiums and your life expectancy, so a policy with little cash value can still sell for a meaningful amount.
What if my cash value is almost gone?
That’s often exactly when to call. As the cost of insurance rises with age, it can drain the cash value, and the policy may be close to lapsing. A policy still in force may sell, even if surrendering it would pay very little.
What should I have ready?
Your policy number, insurance company, face amount, current premium and a recent annual statement showing the cash value. If you don’t have everything, we can request the details from your insurer.
Related services
Often booked alongside this.
Life Settlements
Clear guidance for seniors and policyholders considering life settlements and alternatives to letting a policy lapse.
Viatical Settlements
Clear guidance for policyholders considering viatical settlements and alternatives to letting coverage lapse.
Second-to-Die (Survivorship)
Clear guidance for understanding second-to-die life insurance and possible alternatives to surrender or lapse.
Before you decide,
get clear information.
If you are considering surrendering a policy or allowing it to lapse, a consultation can help you understand life settlements and other available alternatives.
