Abacus Life (ABL) is a renowned settlement provider in the industry and has joined forces with us to fulfill its mission of assisting individuals in accessing the actual value of their life insurance when they need it.
The only life settlement company publicly traded on the Nasdaq stock market, Abacus Life has maintained a net profit for over 19 consecutive years and pays out over 10% more than their leading competitor. Rather than allowing a policy to lapse or surrender back to the carrier for less than its true value, choosing to sell a policy to Abacus Life offers a viable, safe alternative.
What is a Life Settlement?
A life settlement is a financial transaction where the owner of an unwanted life insurance policy transfers ownership and beneficiary rights to an institutional investment fund. In exchange for transferring ownership, the insured receives a cash settlement that can often be four to six times greater than the cash surrender value. This is not a loan, it is a one-time cash transaction that results in a full transfer of ownership in exchange for a lump sum. The money belongs entirely to the policy seller and can be spent at his or her discretion.
Why Life Settlements?
Selling a life insurance policy provides a sensible solution to find value in an asset your client may no longer need, or can no longer afford. Rather than allowing a policy to lapse, or surrendering it for a cash surrender value that is well below your policies true value; selling a policy offers a viable, safe alternative. Approximately 90% of all life insurance lapses, effectively returning billions of dollars annually in value and personal property to life insurance companies, with no benefit to the insured.
Can Your Client Sell Their Life Insurance Policy?
While there are some tested and true parameters for the settlement market, we recommend anyone that may be curious to fill out the Market Value Calculator. There are a variety of ways you can qualify for a settlement, and every client is different. The process of selling life insurance to Abacus Life has never been easier. There are a few qualifying factors to take into consideration: 1) The insured must own a policy with a minimum death benefit of $100,000; 2) Generally, the insured must be at least 75 years old, but a decline in health from the time the policy was issued can lower the qualifying age; 3) The policy must be any UL product, or a term policy that converts to any UL.
How Does Selling a Policy Work?
The life settlement market has historically been cumbersome and complicated, the barriers to entry for a normal person were often too great. It has been Abacus Life’s goal for the past several years to make settlements simple, and we are proud to be the largest direct purchaser in the industry due to that focus on our clients. We got rid of all the red tape, and boiled the life settlement process down to a few simple steps.
- Utilize the Market Value Calculator above to see get an instant life insurance policy quote. The introduction call will typically take no more than 10 minutes.
- We will send some simple policy documents from the insurance carrier in order to provide an offer.
- Receive an offer based on a combination of factors including the policy type, premiums, health, and age. We believe in transparency, so we will ensure that each step is well-explained and that the client is comfortable with the process and the offer.
- Receive the money! After an offer is accepted, Abacus Life will conduct the contracting phase that involves the transfer of ownership of the life insurance policy. Once funds are transferred, clients can expect them in their bank accounts within 24 hours.
Sandra, 59, was struggling under the weight of high monthly premiums and was in need of resources to help with family issues. To free up capital, she considered letting the policy go, but then learned she had other choices. Through a hybrid option Abacus provides, we were able to help Sandra maintain the policy, while giving her an infusion of cash. Abacus quickly paid her premiums to keep the policy current, so her beneficiaries will still receive benefits from the policy, and Sandra received $110,000 to help with medical care and family needs.
At age 83, Eddie decided his life insurance policy no longer met his goals for his estate plan and considered surrendering it entirely. He began exploring the possibility of a life settlement after hearing about Abacus from a friend. Because of his advanced age and medical history, Abacus was able to offer him almost double the cash surrender value of his $2,485,065 policy with a final settlement value of $1,200,000. This money went directly into Eddie’s accounts and he is now able to use these funds to finance all of his retirement needs.
Senior care can be a rather large expense for many people, including those who have thorough financial plans. Although Peter had some money stored away, he still needed additional funds to cover the costs involved with long-term care as he recently turned 89 years old. Weary of monthly insurance premiums, he considered letting his $250,000 policy lapse in order to cut costs, instead, he contacted Abacus Life. We were able to offer Peter $120,000 for his policy; covering his long-term care costs entirely.