WHAT WE DO
- The Life Settlement Option
- What You Need To Know
- Life Settlement Qualifier
Understanding Cost of Insurance Charges and Selling Your Life Insurance Policy
The cost of insurance (COI) is an integral component of life insurance policies, particularly variable and universal life insurance. COI charges encompass monthly expenses for mortality, administration, and other costs incurred by the life insurance company. These charges are assessed based on the insured's attained age, the original rating class, and the current net amount at risk. In most cases, the COI charges are deducted from premium payments before crediting the policy's accumulation value.
Additionally, the historical cost of insurance charges is used when determining Cost Basis which is important for tax considerations when surrendering or selling a life insurance policy.
Making an Informed Decision: Selling Your Life Insurance Policy
When it comes to selling your life insurance policy, it's essential to ensure you receive the best offer available. However, determining the optimal offer can be challenging. One way to attempt to secure the best offer is to apply to every licensed buyer in your state, which may range from 10 to 35 different companies. However, these direct buyers often prioritize their investors' interests rather than yours.
At Welcome Funds, we have leveled the playing field for policy owners. We simplify the process by conducting an auction with these buyers on your behalf. With just one application to Welcome Funds, you can rest assured that we negotiate to obtain the best life settlement offer for you. This streamlined approach to life settlements sets us apart.
Learn more about selling your life insurance policy
LIFE SETTLEMENT BLOG
Direct Life Settlement Buyers vs. Welcome Funds – Advisor Beware!
Posted: byJohn Welcom
Welcome Funds has the privilege of working with numerous financial advisors and wealth managers – and have done so for two decades – some who exclusively focus on servicing high net worth clients. One such advisor who is active in the life settlement market — and already understands the value he can create for his clients — had historically negotiated directly himself with two or three leading buyers of life insurance policies. He thought that simply engaging with mor...
How to Sell Your Life Insurance Policy for $4,743,000 Instead of $275,485?
Posted: byJohn Welcom
Mr. Williams purchased $10 Million in life insurance coverage in 2001 to provide his family with financial security. Over time, his financial priorities changed: his wife passed away, his children became financially independent, financial burdens arose and the estate tax exemption increased substantially.
Suitability of Life Settlements
Posted: byJohn Welcom
Traditionally, estate planning advisors counsel their high net worth clients to obtain life insurance policies with large death benefits. The strategy is simple: create a vehicle for heirs to receive tax-free income at the time of an insured’s passing so sufficient funds are available to pay large estate tax bills when assets are inherited.
What is the Most Suitable Exit Strategy for Life Insurance?
Posted: byJohn Welcom
All eyes in the life insurance agency and the financial advisory world have been on New York, where in the summer of 2019, the New York State Supreme Court paved the way for implementation of Insurance Regulation 187. This rule imposes a new standard for agents and brokers when issuing a recommendation to a client regarding an annuity or life insurance product.
How to Get the Highest Life Settlement Offer
Posted: byJohn Welcom
When you decide to sell a valuable personal asset, you usually want to obtain the highest purchase price for that property. It is sound business sense. However, how do you truly know when you have reached the point of accepting and securing the most desirable offer?
Understanding the Fair Market Value of a Life Insurance Policy
Posted: byJohn Welcom
When a professional advisor identifies a life insurance policy that a client no longer needs or wishes to maintain, he should ask, as standard protocol, whether that policy may have value in the secondary market. If so, the client may be able to sell the policy in a life settlement transaction, enabling him to receive a higher cash payout than he otherwise would obtain by lapsing or surrendering the policy back to the insurance company.
The Power of a Life Settlement Auction
Posted: byJohn Welcom
Professional advisors with clients who no longer need or wish to maintain a life insurance policy have options when exploring the secondary market. Many advisors prudently rely on a licensed life settlement broker to assist them in the sale of the policy and with all aspects of the transaction. However, there is still a large number of professionals persuaded to work directly with only one buyer, called a life settlement provider.
Rebuttals to the “Direct Buyer” Model for Life Settlements
Posted: byJohn Welcom
Most professional advisors who explore the potential sale of an unwanted life insurance policy on behalf of their clients will rely on the assistance of a licensed life settlement broker. Life settlement brokers represent the policy owner in the transaction and have a duty to act in their best interests. Most notably, the broker’s and client’s goal is aligned: to sell the policy for the highest price possible.
Carrier Resistance To Life Settlements: Clients Need To Know They Can Sell Their Policies
Posted: byJohn Welcom
Consumers who sell their life insurance policies in the life settlement market receive as much as seven times more money than they would have received by surrendering their policies back to the insurance companies. Seven times! However, an estimated 9 out of 10 policies are allowed to lapse before paying a claim, according to the Life Insurance...
The Danger of Trying to “Time the Market” for Life Settlements
Posted: byJohn Welcom
Most investors in the stock market understand the danger of “market timing” — trying to choose the right day to buy a stock when the price is low and sell it when the price is high.
