Life settlement companies have made it easier for people to get a fair deal while selling their life insurance policies. Since the life settlement marketplace has extended, more and more people have started to opt for life settlement to prevent their life insurance policies from lapsing.
When it’s your chance to sell life insurance policy, your mind would usually be flooded with a thousand of questions. You may even hesitate while taking any step further. Since conning has become common in this world, you wouldn’t want to be the victim, right?
When you don’t have a clear idea about something, you’re likely to believe in the myths that people brag about. While going for life settlement, which is definitely a relatively new term, you’re likely to carry myths about it in your head. Moreover, myths cannot be drawn to a close until the right information is conveyed.
So, here’s something that you really need to be aware of- common myths about life settlement:
Many life settlement advisors are still working with inaccurate and insufficient information about life settlement.
Myth smashed- Life settlements allow the insured policyholder to sell his life insurance to a third party to receive a cash payment, usually more than the surrender value of the policy. Even if both parties get the benefit, the life settlement advisors are clearly concerned about how to find out if a certain life settlement plan is an advantageous option.
MYTH 2 –
Life settlement market is an unregulated industry.
Myth smashed- The life settlement market as an unregulated industry, is an idea that is not accurate anymore. The life settlement market is charted in most of the states and certain major life settlement organizations like Life Insurance Settlement Association have provided a secured haven for clients as well as advisors, thus allowing them to dive deeper into the industry and gain proper insight. Moreover, the life settlement market has started to work for policyholder’s rights and privacy.
MYTH 3 –
Life settlement is only for the terminally ill policyholders.
Myth smashed- If we look back to the origin of the life settlement industry, it can be clearly seen that the concept of life settlement gained popularity among AIDS patients in the 1980s’ epidemic. Since that time, a lot of transformations have taken place in the life settlement market.
In the current scenario of life settlement consideration, the standard criteria include individuals who have a life expectancy of at least 2 years. But, it also involves those policyholders who have a life expectancy of about 10 years.
MYTH 4 –
Life settlement market usually preys on the senior policyholders.
Myth smashed- The Life settlement market helps senior policyholders receive the maximum amount for insurance policies that are likely to be terminated.
When a senior’s policy lapses, they usually receive a little or no amount as cash surrender value. But when a life insurance policy is sold, they receive a fair price which is usually more than the policy’s surrender value. Nowadays, more and more seniors are opting for life settlement in order to get rid of paying monthly/annual policy premiums.
So, if you’re willing to go for a life settlement, you need to make a clear room in your head. Doing thorough research about the procedure, terms and conditions related to life settlements can help you get good results. Believing in myths is easier but finding out the truth is a wise act.