Life Insurance: Waste Not, Want Not

Every year, life insurance carriers capture approximately $25 billion of economic value from policy owners and trust beneficiaries when the policies of older insureds are surrendered or allowed to lapse. Of that amount, high-net-worth families forfeit around $10 billion because they weren’t aware of how they could recapture the value of those policies through a transaction called a life settlement, which is the sale of a life insurance policy from the original owner to a third party.