Believe it or not, you don’t have to be sick to sell your life insurance policy. You can sell it and repurpose the proceeds in a life settlement. Rob Haynie joins Suzanne Newman on the Answers for Elders Radio Show to talk about how Life Settlements work. Rob is the Managing Director of Life Insurance Settlements, Inc. and serves on the Board of Directors of the Life Insurance Settlement Association (LISA). He has been proactively in the industry for more than 31 years.
Rob says, “Life insurance policies are not designed to pay a death claim. They are priced to know they’re going to lapse. You don’t have to be sick to sell your life insurance, it’s just another misnomer in our industry.
“I’ve been saying it for 30 years: we’re putting the life back in life insurance… We are helping people with life expectancies exceeding 20 years to sell their policies. I sit on the board of LISA [Life Insurance Settlement Association], and I was told the other day we do a market data collection study every year. On average, when you talk about things you could do with the settlement money versus not having so much money, we determined that the typical seller gets 5.2 times to as much as 7.8 times. This is on average. So if you were about to give up your policy for $100,000, and now you’re going to get make it up $500,000, that’s a big difference…
“There’s a lot of fear about Social Security. A lot of people are living on Social Security right now. So the idea of knowing that this is a resource, it eliminates a lot of that uncomfortableness, knowing that they’re going to be okay no matter what happens.”
Email Rob Haynie at [email protected], call his cell phone at 954-599-4433, or learn more at the LI Settlements website.
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