What is a life settlement?
A life settlement is the sale of all or part of an existing life insurance policy. Perhaps the policy is no longer needed or affordable. Instead of letting it lapse or surrendering to the insurance carrier, a life settlement transaction structured with the help of Boyd Settlements may be a better financial option.
What kind of life insurance policy can I sell?
Most types of policies qualify for a life settlement transaction, including universal life, term, group life, convertible term, and others.
Why shouldn’t I use a “direct buyer” to sell my life insurance policy?
Think about a financial advisor – you can work with one who only offers you what their company offers, or you can work with one without limitations. Selling life insurance policies is a similar situation … without limitations, you have a better opportunity to receive more money and that’s what I do for my clients.
What are the steps involved if I can sell my life insurance policy?
The initial phone call to Boyd Settlements. On this call, Boyd will ask you some basic questions about your policy and health to see if your policy qualifies.
If your policy qualifies, an authorization form is next. With this, Boyd will secure any needed medical records and policy info.
The research and negotiation for the highest value is completed by Boyd.
An offer may be provided to you. If accepted, Boyd works on all the steps needed to finish the transaction for you.
Along the way, Boyd is here to answer any questions you may have.
How long does it take to do a life settlement?
Each case is unique, and the transactions do take time. I coordinate all the steps for you, and although they can be complicated, I am with you every step of the way and do all the “heavy lifting.” I am honored to help you and listen carefully to understand your needs.
How do I receive the money after selling my life insurance policy?
Basically, there are two main ways to receive life settlements proceeds. You can receive the money as a lump sum, or in some situations, you can receive some of the proceeds now and keep the rest as a death benefit for a beneficiary you choose. I’ll go over your options so you understand and can make the best decision for your situation.
Do I have to pay taxes on the cash I receive from my life settlement?
Some of the funds may be tax free, some may be taxed as income, and some may be taxed as capital gains. It’s helpful to talk to your tax advisor to discuss your own situation.
Can you give me an example of how this works to help me understand?
This example is for educational purposes only. Mr. Smith is 79 years old and owns a $500,000 universal life insurance policy. His premiums are $12,000 per year. Because he can no longer afford the premiums, he contacted the insurance carrier who offered him a cash surrender value of $5,000. Then he contacted Boyd Settlements who sold his policy for $120,000. A phone call to Boyd can make a huge financial difference in your favor! 727-365-0076
For Financial Professionals
The emergence of the life settlement market has helped many people uncover value for an asset that wasn’t thought to have had much value. Recognizing the fundamental right of a policy owner’s ability to assign ownership to a third party can be extremely impactful for your clients. We would enjoy working with you for your client’s benefit.