Life Settlements
BSMG will execute the best offer for your client
There are times when a life insurance product is no longer needed or wanted. Surrendering the policy often brings significantly less to the client than a sale of the policy. When appropriate, BSMG believes that the sale of a life policy can bring significant value to the client. In these situations and when appropriate, BSMG brings our experience and expertise to create an environment which ultimately provides significant value to the client in exchange for their life policy.
Our process creates maximum value for your client through an open-ended auction with multiple brokers and direct buyers. Fewer headaches, betters offers. We gather all the information and provide the brokers and direct buyers what they need to make competitive offers.
Selling a life insurance policy can be complicated, time consuming, and fraught with potential pitfalls. Lean on our expertise to help you through this process.
BSMG will execute the best offer for your client
There are times when a life insurance product is no longer needed or wanted. Surrendering the policy often brings significantly less to the client than a sale of the policy. When appropriate, BSMG believes that the sale of a life policy can bring significant value to the client. In these situations and when appropriate, BSMG brings our experience and expertise to create an environment which ultimately provides significant value to the client in exchange for their life policy.
Our process creates maximum value for your client through an open-ended auction with multiple brokers and direct buyers. Fewer headaches, betters offers. We gather all the information and provide the brokers and direct buyers what they need to make competitive offers.
Selling a life insurance policy can be complicated, time consuming, and fraught with potential pitfalls. Lean on our expertise to help you through this process.
Our Life Settlement Process Delivers Better Outcomes
OPTION TYPES
Traditional
The life insurance policy is sold to a buyer for a monetary amount that is above the policy’s surrender value. There are no further obligations or claims to the policy, and all future premiums are paid by the buyer.
Retained Benefit
The client retains a portion of the life insurance benefit, without having to pay future premiums. Beneficiaries will receive a guaranteed percentage when the policy ends, but the client has no further obligations or payments to make.
Hybrid
This option allows the sale of just a portion of the life insurance policy. The client receives a cash payment now, and beneficiaries receive a guaranteed percentage of the benefit when the policy ends, but the client has no further obligations or payments to make.
Is Your Client a Candidate for Settlement?
1.
Over age 70
Younger clients may be eligible if medical impairment exists.
2.
Minimum 100k death benefit.
3.
Most policy types are saleable, even term insurance in many situations.
4.
Death benefit is no longer needed or desired.
Need Help With a Life Settlement
If you are considering a life settlement, please contact us or complete this form so we may answer your questions and provide the best options for your client.
Please keep in mind, the client should be at least 70 years old and the policy should have a face value of $100,000 or more.
CASE STUDY
Our expertise and attention to detail deliver better outcomes for your clients
Two business owners, ages 70 and 61, with declining health, sold their business and split dollar dissolved. Existing policies were no longer needed for the Buy-Sell obligation.
BSMG explored the best option to maximize policy value back to policyowner: surrender the policy or explore the secondary market? The policies had excellent value.
BSMG sold the policies on the secondary market with resulting net offers:
- Male age 70 – $624,000 262% more than cash surrender value
- Male age 61 – $562000 168% more than case surrender value
