BOCA RATON, Fla.--(BUSINESS WIRE)--More than 38 percent of individuals who sold their life insurance policies in life settlement transactions last year said they were planning to lapse, cancel or surrender their policies until they learned of the life settlement alternative, according to a newly released survey from Welcome Funds, one of the nation’s leading life settlement brokers.
“The findings from our survey of more than 200 clients provide clear evidence that we need to increase awareness among American seniors that they may be able to obtain far more value from their life insurance policies by selling them as life settlements than they can by lapsing or surrendering them back to the insurance companies,” said John Welcom, founder and chief executive officer of Welcome Funds, and one of the pioneers in the U.S. life settlement industry.
The survey found there were six primary reasons why policy owners chose to sell their policies:
- 38% were planning to lapse, cancel or surrender the policy until informed of the life settlement option; in addition, another 29% were likely to lapse their policies in the future because they no longer required or wanted to pay for life coverage
- 16% preferred cash liquidity due to a current financial situation
- 7% determined the original purpose of the policy no longer existed
- 3% reported that health care and living expenses had become a financial burden
- 3% said that premium costs had become unaffordable
A life insurance policy is considered personal property and — as such — policy owners have the right to sell that policy any time they choose. When a consumer sells a policy in a life settlement transaction, the policy owner receives a cash payment and the purchaser of the policy assumes all future premium payments — then receives the death benefit upon the death of the insured. Candidates for life settlements are typically aged 65 years or older, with a life insurance policy that has a death benefit or at least $100,000.
“Consumers who qualify for a life settlement obtain, on average, five to seven times more money by selling their life insurance policies to qualified investors than they do from surrendering them back to the insurance companies for their cash value,” said Welcom. “The life settlement option allows policy owners to use the proceeds from the sale of their policies to help pay for medical bills, living expenses or anything else they choose.”
To learn more about life settlements and whether you could be eligible for a free review of your life insurance policy, please visit www.welcomefunds.com.
About Welcome Funds
Since 2000, Welcome Funds has been assisting older Americans, and others facing life-threatening illnesses, achieve financial freedom through a life settlement. The company is one of the pioneers in the life settlement market and has been serving the best interests of consumers for 20 years. Welcome Funds is licensed throughout the U.S. to negotiate life settlement offers with state-authorized buyers and has obtained more than $750 million in cash payments for their clients. The firm is a member of the Life Insurance Settlement Association (LISA) and the company’s CEO, John Welcom, is a member of LISA’s board of directors.