A retained death benefit is a Life Settlement where the policyholder keeps a portion of the original death benefit. This means that even though the life insurance policy is sold, beneficiaries still receive a payout upon the policyholder’s death. It’s an appealing option for those needing immediate cash while ensuring financial support for loved ones later.

The amount retained can vary and is negotiable during the settlement process, providing flexibility based on individual needs. This retained portion offers peace of mind for those concerned about leaving their family without financial support. It balances accessing funds now and providing a future safety net.

However, opting for a retained death benefit may reduce the cash value in the settlement. A higher retained death benefit results in less immediate cash. Policyholders should carefully weigh their current financial needs against future benefits for beneficiaries.

Life Settlement - A woman looking at her phone while smiling. retained death benefit

Eligibility Requirements for Retained Death Benefits

  • The policy must be permanent life insurance.
  • The policyholder must have a terminal illness with a life expectancy of 2 years or less.
  • The policy must have a minimum face value of $100,000.
  • Some states require the policy to be in force for a certain term – usually two to five years.
  • No outstanding loans against the policy.
  • Premium payments must be up to date.
Life and Viatical Settlements - A woman walking with a doctor as the doctor talks. Requirements for Retained Death Benefits

At Summit Life Settlements, we provide transparent and ethical retained death benefit services, empowering policyholders with essential information for informed decisions. We aim to ease the process for those facing terminal illness.

We prioritize compliance with state and federal regulations, ensuring every viatical settlement and retained death benefit is conducted legally and ethically. Our experienced team stays informed about changing laws and industry standards.
We also offer ongoing support for policyholders post-settlement, providing guidance on fund management and assistance with any questions or concerns.

We believe retained death benefits can offer financial relief for those with terminal illnesses and are dedicated to helping our clients with integrity and compassion. Contact us to learn more about our viatical settlement services and find out if you’re eligible for a retained death benefit viatical settlement. Our team is here to help you make the best decision for your situation.

Risks of Retained Death Benefit 

CONSIDERATIONS BEFORE CHOOSING RETAINED DEATH BENEFIT

Opting for a retained death benefit can be appealing, but it’s important to consider all factors before deciding. The retained death benefit amount directly impacts the cash value in the settlement, so weigh this against your financial needs.

Consider the impact on beneficiaries too. Retaining part of the death benefit means they’ll receive less than the full amount. Open communication with beneficiaries is essential to ensure they’re aware of any changes in their future inheritance.

Retained death benefits in life settlements can offer financial security for loved ones while providing cash for the policyholder. It’s crucial to evaluate your needs and discuss this option with a financial advisor and your beneficiaries. By weighing the pros and cons, you can make an informed decision that fits your current and future financial goals.

Life Settlement - a son showing his senior Father something on an Ipad. CHOOSING RETAINED DEATH BENEFIT

WHY USE A LIFE SETTLEMENT BROKER?

Life Settlement Brokers have industry expertise, helping navigate the complexities of the process. They guide policyholders, offering insights into trends, regulations, and potential offers. Their knowledge helps clients understand how factors like economic changes affect policy value.

Brokers have established relationships with various providers, increasing chances of competitive offers. This network is essential, matching policies with buyers for better financial outcomes.

As intermediaries, brokers negotiate to secure the best prices, understanding each policy’s true value and conveying it to buyers. This maximizes offers, ensuring policyholders receive fair deals.

Working with a broker saves time and money. They handle paperwork, negotiations, and legal compliance, letting policyholders focus on other priorities. Brokers are typically paid a commission from the final sale, meaning no upfront costs, making it a smart choice.

Life settlement brokers like Summit achieve the best outcomes for selling life insurance policies. Partner with a reputable broker to secure the highest offer for your policy. We provide transparent communication and support, ensuring you feel informed and comfortable throughout the process.

Contact us today to unlock your life insurance policy’s value. Let Summit be your trusted partner in realizing its full potential and guiding you toward a brighter financial future. With our support, you can make decisions that align with your goals.

HOW CAN SUMMIT LIFE SETTLEMENTS HELP?

A retained death benefit can be a valuable financial solution for individuals with a terminal or chronic illness. It allows policyholders to access part of their life insurance benefit while keeping a smaller death benefit for their beneficiaries. At Summit Life Settlements, we understand the urgency of these situations and work closely with clients to ensure they receive the best offer for their retained death benefit.

Working with a reputable life and viatical settlement broker is crucial for getting the best offer for your policy. An experienced broker understands market dynamics and has connections to institutional buyers, ensuring competitive offers. We are dedicated to securing optimal offers and guiding you through every step. Our team provides all necessary information for you to make informed decisions about your policy.

At Summit Life Settlements, our secure Summit Life Marketplace platform connects policyholders with institutional buyers to increase demand and maximize policy value. We manage paperwork, negotiations, and legal requirements, allowing you to focus on what truly matters.

Our goal is to help individuals take control of their finances by exploring all life insurance options, whether through a traditional life settlement, a retained death benefit, or a viatical settlement. Our experts are available to answer questions and address concerns.

Join Summit Life Settlements today to achieve financial security and peace of mind. Let us be your partner in navigating settlement options and creating a brighter future for you and your loved ones. Contact us today to explore your options and unlock the full value of your life insurance policy for a more secure financial future.