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What Seniors Need to Know About Life Settlements

Photo: Courtesy of Matthew Bennett

David Kottler

“The Life Insurance Doctor”

Most life insurance policies lapse before maturity, but what consumers may not realize is that life settlements can help them get that money back.

Seniors who need money during times of uncertainty or to pay expenses may want to consider a life settlement. That’s when a life insurance policy holder sells their existing life insurance policy to a third party, receiving more than the cash surrender value, but less than the policy’s net death benefit.

David Kottler, who’s known as The Life Insurance Doctor, says life settlements are something to be aware of, as 90 percent of policies lapse before maturity, which is a huge loss for consumers. Policy owners can receive cash or retain some portion of the death benefit, and the buyer commits to paying all the future premiums.

Reasons policy owners may consider selling include increased premium costs, poor policy performance, no more tax need for the policy, or they simply need cash.

Best value

Kottler encourages consumers to avoid dealing with direct buyers, who want to buy the policies for cheap. Instead work with a broker, who will look for the best value.

Brokers collect the medical records and information from the insurance company. Instead of charging a fee to market the policy, they get paid a success fee after selling the product.

Kottler offers free life insurance policy reviews as well as instant policy value calculators. This enables the policy owner to get an instant valuation of the policy they own.

“Sell through a broker, not directly to a buyer,” he says. “Probably the difference could be three times as much money.”

To get a free evaluation of your life insurance policy, go to:

This piece has been paid for by Life Insurance Doctor

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