Opulen Capital Life Settlement: The Beneficiary Question

Probably the single most sticking point when considering any life settlement solution is what happens to one’s beneficiaries. If Jane Jones sells her life insurance policy to the life settlements market, what happens to the rights of her beneficiaries – her three children?

Truth is selling your life insurance policy does come with risks to you and your beneficiaries. While the lump sum cash payment can be welcome in tough economic times, policy holders should not rush into the life settlements market simply to grow revenue. Several factors, including the policy’s original beneficiaries, must be considered before offering your policy up on the life settlements selling block:

Will you need the policy to cover expenses at the time of death? Many beneficiaries are often recipients of the policy holder’s estate. Many policies are purchased with the idea of providing necessary funding to pay for taxes and to satisfy outstanding bills. Without the advantage of a death benefit, will your beneficiaries have enough to cover expenses after your death?

Do you need your cash to continue growing? The beauty of life insurance policies is that cash value is tax-deferred. Also, policy holders can set up their policies so that they can receive dividends. Since life settlements companies are not considered insurance companies under Federal Trade Commission rules, the payout a policy holder receives will not grow in value over the years, nor will it be exempt from taxes.

Are you planning to purchase another policy? Some policy holders may attempt to gain quick income and plans to use part of the life settlement proceeds to fund new life insurance to cover the death benefit. However, many policy holders don’t consider that the old life insurance policy will still be in effect, which could prevent the policy holder from being able to obtain another policy. Insurance companies are careful to spread their risk thinly – once a policy holder has sold a policy that still has an active death benefit, they are less inclined to write a policy for equivalent coverage.

Can you afford a new policy? Most policy holders understand that premiums vary with age. If a policy holder is able to obtain new coverage, the higher premiums could make it much more difficult for the policy holder to afford coverage. Also, if the policy holder’s health condition has changed, chances of an insurance company writing a new policy make be drastically reduced.

While the market may not be for everyone, there are many reasons still for considering a life settlement arrangement. They include:

• The original reason for needing the policy no longer exists, such as a means of protecting children or creating income for beneficiaries.
• The policy beneficiary is deceased and no other beneficiary exists.
• The policy holder is terminally ill and needs to cover medical expenses (in this case, viatical settlements may be the best option).
• The policy holder wants to dispense the policy proceeds while he or she is still living.
• The policy holder is looking to eliminate premiums and capitalize on current assets.
• The policy is in danger of lapsing and the policy holder wants to sell in order to retain some value on the policy and not lose all value.
• The policy holder has too many assets tied up in life insurance and needs diversification.
• The policy holder is looking to fund health costs that are not covered by current health coverage.

If you’re unsure if the life settlement market is for you, call Opulen Capital. Our experts will help you assess your life situation and determine the best option for your needs.

Located in La Jolla, California, Opulen Capital is a specialized financial services firm focusing on products and services tailored for senior citizens. Opulen Capital is one of the leading firms offering Life Settlement opportunities for high net worth clientele. We leverage unrivaled experience and exclusive relationships in the life settlement marketplace to structure, obtain, and sell life insurance products to maximize cash profits for our valued clients. Opulen Capital’s mission is to continue to provide the best solutions for our clients through the highest level of integrity and service. For more information, visit our website athttp://www.OpulenCapital.com or call Opulen at 877-OPULEN-1 (877-678-5361)