Upgraded Replacement Case Example

This client needed to continue his life insurance coverage.  His existing term policy contained conversion privileges.  Instead of letting his existing term policy lapse, we were able to generate a life settlement offer.  The proceeds from this transaction were used to fund a new term life policy with premiums slightly lower (due to changes in the pricing of the insurance products) for two full years.  So, the client walked away with 9 additional years of term coverage without a premium for 2 years and still maintained the conversion privilege if needed at a later date.

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Life Settlement licensing requirements vary by state. In some states, life agents and other financial professionals must be licensed to source policies or receive commissions. Settlement Benefits Association is not licensed in all states. Some or all of the proceeds of a Life Settlement may be taxable under federal or state income tax laws. Advice from a professional tax advisor is recommended. This web site is not currently approved in the states of Oklahoma or Texas. This web site does not apply to variable life settlements. Receipt of proceeds may impact eligibility for government benefits and entitlements. Prior to sale, the insured should consider the continued need for coverage, impact to estate plans, availability of insurance, cost of comparable coverage or tax implications.