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With over 76 years of experience, The Jordan Insurance Group is an industry leader in Life Insurance strategies and Employee Benefits. We strive for excellence through our due diligence in selecting products to satisfy our clients’ needs with proven benefit designs and tax strategies. Our Team utilizes a diversified multi-level approach in preserving, protecting and growing wealth for our business and individual clients.
Retirement Often Signals a Change in Insurance Needs
The Jordan Insurance Group, MD, Life InsuranceDuring our working lives, most of us carry some amount of life insurance to replace the income to our families should we die prematurely.  Upon retirement, however, the need for life insurance and the ability to pay for it may change significantly. When life insurance becomes no longer needed, wanted or affordable, it is frequently lapsed or surrendered for whatever cash value the policy may have.  But there is now an alternative available to lapsing or surrendering a policy called a life settlement.  In a life settlement transaction, the policy owner, in exchange for an immediate cash payment, sells the unwanted policy to investors for an amount greater than the cash surrender value. Not every policy qualifies, so here are some general criteria:
  1. Universal life and term insurance convertible to universal life with a face amount of $500,000 or more are the best prospects.
  2. The insured is around age 70 or older.
  3. There has been some decline in health since the policy was issued.  The younger the insured the greater the health impairments needed.
  4. The policy is about to be lapsed or surrendered.  A life settlement is usually not a good alternative to keeping a policy.
If you are retiring and may have policies that have outlived their usefulness, you should give us a call.  You may be able to get much more cash for you policy than its surrender value.
William Jordan
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