Coventry Urges Policyowners To Review Life Insurance Value
KUALA LUMPUR, Sept 11 (Bernama) -- Coventry, a provider of life insurance secondary-market solutions, is urging policyowners and financial professionals to review the value of existing life insurance policies and consider alternatives before allowing coverage to lapse or surrendering it.
The company said life insurance can provide financial protection for families, support estate planning and address business needs, but policyowners should also reassess their options as their financial circumstances and coverage needs change.
“Americans hold more than US$14 trillion of individual life insurance, yet hundreds of billions of dollars of that coverage is surrendered or allowed to lapse every year,” said Coventry chief executive officer, Reid Buerger in a statement. (US$1 = RM4.06)
He said policyowners and their advisers should consider whether alternatives are available before valuable coverage is terminated, noting that life settlements can provide proceeds significantly above a policy’s cash surrender value.
A life settlement allows eligible policyowners to sell an existing life insurance policy in the secondary market rather than surrendering or allowing it to lapse, potentially providing additional value from coverage that is no longer needed.
Coventry said financial professionals should consider a range of factors when reviewing an existing policy, including its performance, the future cost of maintaining coverage, available cash surrender value and whether a sale in the secondary market could provide a better financial outcome for the client.
-- BERNAMA