What if My Business Has An Unneeded Life Insurance Policy?
Your Virtual Mainstreet wrote an interesting post today on
Here’s a quick excerpt
What if My Business Has An Unneeded Life Insurance Policy?
Many business owners, for whatever reason, find that life insurance policies that once met their business needs no longer do. Traditionally, these people have had only two options: lapse the policy with nothing to show for the premiums that they have paid, or if the policy had cash value, a business could surrender it for the cash value, often for a lot less than the premiums paid into the policy. Now there is a third alternative: a life settlement.
A life settlement is a transaction where the owner of an unneeded life insurance policy sells the policy for an amount greater than the cash surrender value of the policy. A life insurance policy can become a very valuable asset that actually has a fair market value.
Generally, the insured needs to be at least age 65 years or older and have had a [...]
Read the rest of this great post here