Life Settlements
Auctioning Your Unneeded Life Insurance
A life insurance policy can be sold just like about anything else you own.
Why would anyone want to sell their life insurance policy? And why in the world would anyone want to buy someone else's?
- Premiums are unaffordable
- Your term policy expires soon anyway
- You just don't need the coverage anymore
Valmark Securities supervises all life settlements like security transactions, and its registered representatives act as brokers on the transaction and may receive a fee from the purchaser. Once a policy is transferred, the policy owner has no control over subsequent transfers and may be required to disclose additional information later. If a continued need for coverage exists, the policy owner should consider the availability, adequacy, and cost of comparable coverage. A life settlement transaction may require an extended period to complete and result in higher costs and fees due to its complexity. Policy owners considering the need for cash should consider other less costly alternatives. A life settlement may affect the insured’s ability to obtain insurance in the future and the seller’s eligibility for certain public assistance programs. When an individual decides to sell their policy, they must provide complete access to their medical history and other personal information.