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Step 1
Are you over the age of 65 with a life insurance policy that you no longer need, can't afford anymore, or just need a different life insurance product? A life insurance settlement might be the way to go.
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Step 2
The majority of the general public is not aware that there is a secondary market for life insurance. More than 30 insitutional investors such as Goldman Sachs and Berkshire Hathaway (Warren Buffett) invest in this market.
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Step 3
I happen to be a life settlement broker that specializes in this field. As brokers, we have the client fill out an application and shop the market for the best possible offer. We create a "bidding war" to drive up the price to ensure that the senior gets the best possible pay out.
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Step 4
The parameters are fairly simple:
-Seniors should be at least 65+, 75-90 is the sweet spot
-Must have a life insurance policy of 250K of death benefit or more
-Universal life policies are the most attractive to investors
-The policy should have annual premiums of 5% of the face amount or less -
Step 5
The average payouts historically have been 2-3 times the cash surrender value and there are no limitations on how the seller can spend the settlement proceeds. This product can be very valuable in the right scenario.
