Sell Your Life Policy with Confidence
Unlock the value of your life insurance policy with a safe, transparent, and supportive process from Schroeder Caldwell.
How Selling a life insurance Policy Works
Ready to sell your life insurance policy? Our experts guide you through each step from initial evaluation to final payout. Get a fair offer, clear answers, and no surprises. We’re here to make the process easy, transparent and stress-free.
In 1911 the U.S-. Supreme Court ruled that the policyowner has the right to sell a life insurance policy – individually owned or corporate owned – to another party.
A startling fact is that over $600 Billion in life insurance death benefits are on policies that are lapsed each year, A lapsed policy is one where the premium payment is stopped and the life policy is canceled for non payment of premium. The life insurance companies love a lapsed policy – the companies have received premiums on a policy, and they will never pay a death benefit.
Don’t lapse or surrender a policy until you can establish the policy’s Fair Market Value. Our firm can help you determine your policy’s Fair Market Value.
The Life Settlement industry is a very active market that buys life policies that are no longer needed or have gotten too expensive to maintain. A life Settlement transaction pays the policy owner a one time cash payment that is more than the policy surrender value and less than the death benefit. The policy buyer becomes the owner of the policy and receives the policy death benefit when the insured person dies.
- Target Market: Person Insured is age 65+ with increased health issues; Minimum policy death benefit is $100,000.
Why are Life Policies Sold?
- The annual cost of the policy becomes too expensive to maintain.
- Cash from the sale of the policy can be used for other investments.
- Cash from the sale of the policy is used to reduce expenses.
- The policy is no longer needed to pay estate taxes.
- Cash from the policy sale is used for business expenses,
What is a policy worth?
- The value of the policy is based on the age and health status of the person insured and the cost of the policy in future years.
Very easy sales process
- No medical exam is required – the buyer will pull medical records to support their offer.
Is this a taxable event for the seller?
- Usually this is a capital gains tax event, but there is an offset for prior premiums paid. We always encourage all concerned to contact their tax professional for additional information.
What is the role of Schroeder Caldwell in the transaction?
- We represent the seller and use our industry partnerships via an auction process to leverage offers from multiple buyers to provide the highest evaluation and purchase price of a policy. We only represent and negotiate on the seller’s behalf in working to obtain the highest sale price in the market.
If interested, please contact us for a short telephone conversation.