Did you know that over 85% of Life Insurance policies never pay a death benefit? Most policies either lapse (due to nonpayment of premiums), they are turned in for their Cash Surrender Value, or in the case of Term Life Insurance policies, they simply expire.
The associates at North Hills Capital provide seniors with additonal options. The most financially lucrative of these is the Life Settlement. A Life Settlement is simply the sale of a life insurance policy by the policy owner to a third party investor. North Hills Capital works with over 20 institutional investors such as Wells Fargo, Berkshire Hathaway, and Bank of America. They use a competitive bidding process where the investors actually bid against one another in an auction; this insures that the highest value is paid for the policy. In most instances the policy owner will receive five to eight times the Cash Surrender Value of the policy.
There are other instances where a Life Settlement transaction can occur when there is no cash value to the policy. One example of this would be a Term Life insurance policy. Term policies are popular because they have the lowest premiums; however, if you were in your 40's when you purchased a 30 year term policy, it would expire in your 70's -- toward the end of your life expectancy. The premiums in most cases would be paid for 30 years and then the policy expires when you are most likely to need it. With a Life Settlement we can often convert that Term Policy into a Whole Life policy and at the same time compete at Life Settlement transactions -- providing a Lump Sum Cash payment to the policy owner and relieving the policy owner of future premium payments.
Another option is an Advanced Benefit Loan. With this option the policy owner can borrow up to half of the Face Value of the policy. There is no obligation to make loan payments and there are no out of pocket expenses. The loan is repaid using your policy's death benefits with the remainder going to your beneficiaries.
The third common option is a 1035 exchange. In a 1035 exchange a Life Insurance policy with a Cash Surrender Value is exchanged for another financial product, usually and annuity, with no tax consequences. This relieves the policy owner of future premiums and provides an income.
Everyones needs are different and determining the best option is not always obvious. The associates at North Hills Capital are committed to working with individuals to determine the best option for them.
For more information you can visit our website at http://www.PaLifeSettlements.com or call us at 888-675-9101
Financial and Legal Professionals can find out more about us at http://www.NorthHillsCapital.com