As the market for Life Settlements has grown, so too, have the reasons for seeking a Life Settlement.
Below is a simple summary of some of the most common reasons a policyowner may wish to obtain a Life Settlement. These can be grouped under changes to:
Life Insurance Needs
- Premiums too costly
- Beneficiaries no longer living
- Funeral expenses no longer an issue
- Debts have been eliminated
- Replacement policy is desired (with reduced premiums, different coverage or both)
- Current economy requires changes in retirement planning
- Other family concerns
Financial Situation
- Policyowner has long-term care or other medical needs
- Policyowner wants to meet assisted living care expenses
- Policyowner has an emergency need
- Policyowner wants to eliminate debts
Financial Priorities
- Policyowner wishes to make gifts to family members while still living
- Policyowner wishes to make gifts to charities
- Policyowner wishes to make other investments
- Policyowner wishes to purchase a vacation or retirement home
- Policyowner simply wishes to use the funds for other purposes (vacations, etc.)
Estate Planning
- Estate tax laws have changed
- Estate has become more liquid
- Estate has become less liquid
- Other insurance options more in line with estate’s long-range goals
Business Insurance Needs
- Business has been sold or liquidated or is up for sale
- Insured no longer a “key” employee involved in day-to-day running of business
- Policies no longer needed to fund deferred compensation packages
- Policyowner may require funds to buy our partner’s interest
This list is intended as a general guide only. There can be many reasons to seek a Life Settlement. For questions concerning Life Settlements or assistance in submitting an application, contact Ashar Group at 800-384-8080 or click here.
