July 13, 2018
o often overlooked, a life settlement could bring more value than surrendering the policy and should be compared to the other strategies as well. Most importantly, for term policies that are convertible to universal life, a life settlement might be the only option that salvages any value at all. Before pursuing a life settlement, the trustee should determine if the trust permits the sale of a policy, though such restrictions are not common. It is also possible to sell the policy to one or more of the beneficiaries, but since all of the beneficiaries don’t necessarily have similar objectives, or adequate resources, that approach rarely works out. However, should that be considered, investigating a life settlement, if nothing else, will offer a good indication of the fair market value of the policy.