Life Insurance is purchased for a purpose; often times over time, the original purpose no longer applies.
North Hills Capital works with seniors to help them turn an illiquid asset into CASH. When a Life Insurance policy is no longer wanted or needed, or is no longer affordable -- the usual options given by the insurance company is to let the policy lapse or turn it in for the Cash Surrender Value.
We give seniors additional options. One of those options is a Life Settlement. This is simply the sale of an existing Life Insurance policy to a third party institutional investor. A Life Settlement typically provides a cash payment to the policy owner of 5 to 8 times the Cash Surrender Value. It can even provide a cash payment when there is no cash value to the policy. The policy owner receives a lump sum cash payment and is relieved of future premium payments.
Another option is an Advanced Benefit Loan. Using this option, the policy owner can borrow up to 50% of the face amount of the policy with no obligation to make loan payments or premium payments. The loan is repaid using the policy's death benefits with the remainder going to your beneficiaries.
A 1035 exchange is a tax free exchange of a Life Insurance policy for a financial product which has a cash value such as an Annuity. This relieves the policy owner of future premium payments and provides an income producing asset.
North Hills Capital works with seniors to determine which option suites them best.