Agent

Make VSPI Your Partner in Life and Viatical Settlements

If you’re a life insurance agent or financial planner, VSPI wants to work with you to help your clients maximize their investment portfolio. Life and viatical settlements can generate cash on life insurance policies clients no longer want or need — often for considerably more than the policy’s surrender value.

Business clients holding life insurance policies on “key” persons who have retired or left the organization — or the executives who now hold such policies on themselves — can turn them into cash.

There is no obligation, and this service is provided at no cost to your clients.

With so many financial services being offered these days, life and viatical settlements are often overlooked. But if clients have life insurance policies they simply don’t need, life settlements are one of the easiest ways you can recommend to boost their cash reserves.

In return for resolving what may be a financial burden, you earn your clients’ loyalty, while earning a commission for yourself as well.

VSPI has access to a variety of well-capitalized funding sources, and we’ve been handling life and viatical settlements, some worth in excess of $100 million, since 1998.

What qualifies for a life or viatical settlement…

  • The policy has a face value of $250,000* or more.
  • The policy has been in force for at least two years.
  • The insured is at least 65 years old and meets certain underwriting requirements.
  • The insured is any age and has a life-limiting illness.

* VSPI’s minimum threshold for transactions is $250,000; however, policies of lesser value may qualify. Call or email to discuss your particular case.

Case studies…

An 80-year-old male had $4 million in various life insurance products, with an aggregate total cash value of $540,000. He could surrender them for that, or continue making large premium payments until his death, whereupon a 40% tax rate would eat $1.6 million of the $4 million death benefit.

Instead, VSPI negotiated a settlement payment of $1,000,000 — a return of $460,000 more than the cash value — providing his investment adviser $1,000,000 to reinvest for the client now.

A 68-year-old male had a $500,000 term life insurance policy with no cash surrender value. His only option was to lose his entire investment by discontinuing premium payments and letting the policy lapse.

Because the client had treatable testicular cancer in his medical history, VSPI was able to sell the policy for $25,000 — well more than his total premium payments.

A 79-year-old male retired business executive gave his business to his children, but things weren’t going well. The executive still held a $5 million key-man policy with cash value of $1.2 million.

VSPI sold the policy for $2 million — a return of $800,000 more than the cash value — so the family could reinvest it into the company to save it.

Help your client get started…

Check our Getting Started page to see if we are licensed in your state. If so, please instruct your client to visit VSPI.com to download and print the appropriate form to provide us necessary information and give us permission to gather their medical and insurance records.

More information…

Read our Guide to Selling Business Life Insurance Policies on Key Executives if your client is a business or a retired executive with a life insurance policy they no longer need.

Read our Guide to Donating Your Life Insurance Policy to Charity if your client is considering donating their policy to charity. Find out how the charity can receive the policy’s value today through a life settlement and avoid making any premium payments.

Read our Guide to Getting a Loan on Your Life Insurance Policy if your client wishes to retain ownership of the policy while using it as collateral for a cash advance now.