Life Settlements for Businesses

 

Regardless of size, the life settlement option represents a unique opportunity for businesses. Companies which obtained a key man policy on an executive, manager, or employee, or perhaps a buy sell arrangement which was structured on behalf of ownership, may want to evaluate this opportunity.

 

As these policies are generally term policies, companies often allow them to lapse once they have done their job. Once you understand the unique concept of life settlements, you understand why this may be a potentially costly error. As these policies are often convertible to universal life policies, the business can create significant liquidity from an otherwise dormant asset; hence they present a real, yet often unknown value to business.

 

Business owners must discuss with their advisors if the term policies it owns and no longer requires can turn into remarkable revenue for their firms. Imagine the contrast of lapsing a life insurance policy vs. generating perhaps hundreds of thousands of dollars or even more, from an asset that would never have been worth much at all.

 

If you want more info, Brookfield Partners is just a phone call away!