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Life Settlements

A life settlement enables a policyowner to sell their life insurance policy for its current market value. This can provide an cash infusion if a client is over-insured, or if they can no longer afford the premiums needed to keep their policy in force.

What is a Life Settlement?

A life settlement is the sale of a policyowner’s life insurance policy for its market value. The policy must be in-force, which means active and current in payments. Policyowners may elect to terminate their policies for a variety of reasons:

  • The policy is no longer needed

  • The insured's health has changed

  • Premiums have become too expensive

  • Cash surrender value has been depleted

  • Unanticipated liquidity need

  • Long-term care expenses

Instead of letting the policy lapse or surrending it to the carrier, a life settlment enables the policyowner to generate cash value from a portion or all of their policy.

Why DPL Likes Life Settlements

Life settlements can help the financial lives of seniors by providing significantly greater resources in retirement from the sale of life policies than if they lapse or surrender back to the insurance company. Instead of letting the policy lapse when it becomes unneeded or unaffordable, a policyowner can sell that policy through a life settlement. A life settlement can generate up to four times or more value for policyowners than the policy’s cash surrender value. That’s found money for seniors to fund retirement investments, and to pay for costs of living, healthcare and long-term care.

How to Think About Life Settlements

When your client needs:

RETIREMENT INCOME: Clients needing additional assets for retirement can utilize a life settlement to exchange their life insurance policy for its current cash value.

TAX-FREE INCOME: In situations where the client is chronically or terminally ill, a life settlement's proceeds may be received tax-free.

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Have more questions about Life Settlements?

Call us at 888.327.0049 to speak to a DPL Consultant.


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DPL Financial Partners does business in the state of California as DPL Insurance Solutions
under California License #0M42434.

Securities offered through The Leaders Group, Inc. Member FINRA / SIPC
26 W. Dry Creek Circle, Suite 800, Littleton, CO 80120 • 303-797-9080
DPL Financial Partners is not affiliated with The Leaders Group, Inc.

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