Close Close
Popular Financial Topics Discover relevant content from across the suite of ALM legal publications From the Industry More content from ThinkAdvisor and select sponsors Investment Advisor Issue Gallery Read digital editions of Investment Advisor Magazine Tax Facts Get clear, current, and reliable answers to pressing tax questions
Luminaries Awards

Portfolio > ETFs > Broad Market

Ask the expert: is a $150,000 face amount too small?

Your article was successfully shared with the contacts you provided.

The question was: I have a client who is age 66. He has decided to stop paying premiums on his $150,000 term policy. Could he possibly sell it in the secondary market or is the face amount too small?

The answer is: There is a market for smaller policies. Some life settlement providers like Coventry First have the ability to purchase policies with a minimum face amount of $100,000. Coventry First’s policy valuation process is expedited through a Simplified Settlement questionnaire, which the insured and owner sign verifying policy information and medical history.

For these smaller policies, valuations can be performed quickly upon receipt of the application. Typically, your client’s term policy would have to be convertible, which means you as the advisor could be the writing agent on the converted policy. A win-win for both you and your client.

Michael Coben
Senior Vice President, Account Services
Fort Washington, Penn.
[email protected]


© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.