The secondary market for life settlements is continually seeking new policies for purchase. Even if you have presented your policy for sale in the past, the market is ever growing and it may be productive to revisit the opportunity.
Although anti-consumer behavior on behalf of the mainstream insurance industry continues, the adoption of the model disclosure act (NCOIL) is gaining momentum and laws similar to the act have already been passed in four states: Maine, Washington, Oregon and Kentucky. The act requires insurance companies to notify senior insureds who are about to lapse or surrender a policy, that other options, including a life settlement, exist. More states are currently considering similar legislation.
Recently, an amendment to the Washington law was proposed that would exempt term life insurance for disclosure. Simply stated, insurers would prefer to have policy owners stay unaware of this option. They've stated the notice requirement would be too burdensome and costly although the notice is merely a form letter to the insured. The real reason is obvious: They want to stifle the life settlement industry and conceal from consumers the opportunity it provides them. Unfortunately, this is true. Insurance company profits are 80%+ derived from expired, lapsed and cancelled policies where benefits were never paid out.
Policy owners should be informed by their insurers, financial advisors and certified financial planners that they have the option to sell their policies onto the secondary market. They have a fiduciary responsibility to provide this information vs. withhold it from you. Ask your planner to examine your financial landscape and consider a life settlement for unwanted or unaffordable policies.