For policyowners who are considering the surrender or lapse of your policy, there is a third option that is often more financially rewarding. It is called a life settlement and is based on the secondary market for life insurance policies, which has created a viable market opportunity for policyowners who meet certain parameters. The proceeds of a life settlement are unrestricted and can be used for any purpose.

Some of the more common reasons why an individual might consider the sale of a life insurance policy are listed below. Regardless of what the motivator is, the life settlement option should be explored before surrendering or lapsing a life insurance policy so that the ultimate decision is an informed one.

There are many reasons why an individual would consider selling a life insurance policy. Common reasons include:

• Insurance needs have changed, and the policy is no longer needed or wanted
• Premiums have become unaffordable
• The policy is lapsing or is about to be surrendered
• Cash is needed for other purposes
• Beneficiaries have been outlived
• The insured and policyowner divorced
• The policyowner needs new, more efficient life insurance, a paid-up or a survivorship policy
• The policyowner needs an annuity or long-term care
• The policyowner wishes to create liquidity for other investments
• Estate tax needs or estate liquidity have changed
• Debts secured by the insurance policy have been repaid
• The policyowner wishes to make gifts to beneficiaries while still alive
• The policyowner wishes to make gifts to charities

Whatever the reason, Brookwood Settlements will utilize its considerable resources and deep knowledge of the life settlement industry to help policyowners realize the full market value of their policies.