RETAINED DEATH BENEFIT OPTIONTransaction Process Oyster Pearl

A revolutionary transaction for the life settlement market, enables policyowners to keep a portion of their life insurance with no future premium obligations. As a result Retained Death Benefit redefines how you manage life insurance assets.

Life insurance has long been a valuable estate planning tool. However, the cost of maintaining insurance for older, affluent individuals presents significant challenges. Underperforming policies, due to low interest rates, combined with longer life expectancies, often put the annual premium outlay beyond what a policyowner chooses to maintain.

In each of the following transactions, Retained Death Benefit makes it possible to eliminate premium payments while retaining a portion of the death benefit with no future premiums. Here are some examples of how Retained Death Benefit can be tailored to the policyowner’s individual situation.

  • The policyowner may choose to retain a portion of death benefit in lieu of a cash payment.
  • The policyowner may receive a cash settlement in addition to retaining a portion of the death benefit.
  • If a policyowner’s need for insurance decreases over time, Retained Death Benefit can be designed to provide a decreasing death benefit.

The result is a revolutionary shift in how life insurance assets are managed. Advisors can have a client’s policy appraised to determine the market value. And the information provided by these appraisals helps policyowners use their capital more efficiently.