Author: zvujica zvujica

01 Feb Consider surrendering the policy for its cash value or explore the possibility of a life settlement

If death benefit coverage is no longer needed, surrendering the policy for its cash value or selling the policy on the secondary market should be considered

Further illustrations to obtain from the insurance carrier will vary depending on policy and/or plan type; however, scenarios showing reduced death benefits to maturity or to a risk tolerable age should be examined. Reducing the death benefit will typically be an option, but if there is minimal cash value, even reducing the death benefit may not prolong the policy far beyond a projected lapse at its current death benefit.

Investigate replacement of the existing policy. If the duration of coverage at the current death benefit or a reduced death benefit is not satisfactory, replacing the current policy with a newer policy from the insurance carrier or a different insurance carrier should be explored. Depending on the age and health of the insured, utilizing the current policy's cash surrender value to facilitate a 1035 exchange as a single premium into a new policy could potentially provide the trust with a policy Heath payday loan providers providing superior coverage to the current policy.

These are ways to get an immediate return on previous premium contributions in lieu of letting the policy lapse without value. EnTrust Settlements (entrustsettlements), an affiliate of RIC, can provide a preliminary life settlement evaluation to determine if the policy is a good candidate for sale on the secondary market and if the expected sale value would surpass the current cash surrender value. RIC recommends consulting a tax advisor should either of these options be considered to ensure the trustee is aware of the taxation of the proceeds, if any.