Selling your life insurance policy to a trusted buyer like Abacus Life provides you cash that could alleviate your financial struggles. Abacus Life is ranked #1 in the life settlement industry for highest client payouts by working each day to ensure every clients’ expectations are exceeded. One of the most common questions we receive working with senior clients is exactly how much they could receive, and what the determining factors actually include. Because each case is specific, there is not unified answer that is applicable to each client. There is, however, a list of qualifiers and guidelines we utilize to help formulate offers.
Here we will break it all down to depict how each quote is generated:
- Life Expectancy: Life expectancy is the approximate number of years someone can anticipate to live based on the present age, health conditions, and lifestyle. A professional underwriting team uses the insured’s health information, current age, and information to calculate their life expectancy.
- Age of the Insured: An older insured can generally expect to receive a higher payout than a younger individual in similar health with a similar policy, primarily due to estimated future premium debts and life expectancy.
- Health of the Insured: The insured’s present health condition is essential on the life expectancy calculation. The insured’s health at the point in time the policy was issued could discover significance within the pricing illustration. For that reason, the insured’s health is an essential factor in determining policy value.
- Premium Schedule: An insured’s premium schedule was established when they initially acquired the life insurance policy and is part of their contract. It summarizes the premium requirements for the duration of the policy and any rate escalations that will occur throughout the insured’s lifetime. Therefore, more significant premium expenses reduce the amount the provider can provide to pay for the insured’s life insurance policy.
- Premium Payments: By utilizing the premium schedule and life expectancy, the provider can establish the approximate overall premium payments required throughout the insured’s life to maintain the policy in force. The further the provider anticipates paying premiums, the fewer they can pay upfront.
- Policy Type: Though nearly any type of life insurance can qualify for a life settlement, the type of policy can affect not only eligibility, but the size of the payout as well.
- Length of Ownership: Varying on the state in which you reside, you may be subject to a waiting period from the date you initially purchased the policy prior to selling it. This is determined by state law.
- Policy Size: As fundamental as it may seem, the greater the policy, the higher the payout. Essentially, the payout can be viewed as a percentage of the total face value of the policy.
As always, we suggest that seniors utilize our Life Settlement Calculator to generate an instant quote that can be used to start the conversation with one of our team members. Abacus has refined the entire life settlement process with our clients’ best interest in mind. It is important to note again that each case is unique, and qualification depends on each specific case. We recommend reaching out to our team to see if you qualify and get any potential questions answered. Our top priority is to ensure our clients are well-educated in the life settlement process and confident in their choice to start the process. Most importantly, we want to exceed their expectations by giving them the highest possible offer.
If you or someone you know could benefit from a life settlement, feel free to reach out to our team at 800-561-4148 and we would love to help you get started!