Your Term Policy Could Be A Gold Mine 2

March 12, 2008
By seadmin

By Kevin Yurkus, president of Fairway Capital

If you’re like me, you probably have a cheap term life insurance policy. In most cases, our term policies expire without paying a benefit. When the term is up, we simply allow our policies to cancel. We think, "What other option do we have?"

Well, think again, because now there is an alternative for many term-life policy holders — an option that the majority of the public is unaware of — an option to sell an expiring term policy for cash. Yes, that’s right. You can sell an expiring term policy for cash.

How is this accomplished? In recent years, a secondary market has emerged whereby Wall Street institutions (Deutsche Bank, Credit Suisse, Berkshire Hathaway, etc.) pay policy holders cash to purchase their life insurance policies. In short, these institutions offer cash settlements to buy in-force life insurance policies.

Why does this market work? It’s because Wall Street capitalizes on the best-kept secret in the insurance business. It’s the secret of "lapse rates" and involves the hundreds of millions of dollars that life insurance companies collect without having to pay claims. Insurance carriers collect our money for years and how do we reward them? By letting our life insurance policies expire, essentially creating an ATM for insurance companies.

Let me illustrate how incredible this opportunity can be. I know of a case where a 73-year-old man owned a $3 million term policy. The policy was set to expire in less than one year.

Like many of us, he was prepared to let his term policy expire since it had served the purpose of covering his insurance needs for a period of time. He was fortunate enough to read an article in The Wall Street Journal in December 2006 and discovered that his policy might be eligible to be sold for cash in the secondary market. After finding out more, he received an offer of $400,000 to buy his policy.

This opportunity doesn’t work for everybody. Wall Street wants policies only on people who are at least 65-years old. Why? It’s because Wall Street does not want to wait forever to collect on an investment.

If you are more than 65 years of age and have term life insurance (or know someone who does), DON’T LET IT EXPIRE!

You could be eligible to capitalize on a large cash settlement for this otherwise "dead’ asset. In fact, if you have any type of insurance, Wall Street might pay big bucks to buy your policy.

If you are interested in this opportunity, please contact me, Kevin Yurkus, president of Fairway Capital, by calling 800.338.1035. You can also contact me via e-mail or by visiting my Web site.

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