WHAT IS A RETAINED DEATH BENEFIT LIFE SETTLEMENT OFFER?
A Retained Death Benefit (RDB) offer is a life settlement option that allows a policy owner (seller) to retain a portion of their life insurance policy's death benefit, for the beneficiary of their choice, in lieu of receiving a cash only lump sum settlement (a typical life settlement offer). A hybrid offer can also be negotiated that includes a cash payment to the seller in addition to the retained death benefit. The life settlement fund that purchases the policy becomes the policy owner and takes over 100% of the premium costs. When the death claim is made, the seller's beneficiary is paid directly by the life insurance carrier and the fund receives their contracted portion of the policy's death benefit.
In addition to the option of retaining a portion of the death benefit, the seller can also negotiate a hybrid offer which includes a cash payment in addition to the retained death benefit. This provides the policy owner with additional liquidity while still preserving a portion of the policy's death benefit for their beneficiaries.
Once the life settlement fund purchases the life insurance policy, they become the new policy owner and take over 100% of the premium costs. This relieves the policy owner from future premium payments and transfers the responsibility to the life settlement fund.
When the death claim is made, the seller's beneficiary is paid directly by the life insurance carrier, ensuring that the retained death benefit goes directly to the intended recipient. The life settlement fund then receives their contracted portion of the policy's death benefit as agreed upon in the settlement contract.
Overall, a Retained Death Benefit (RDB) offer provides policy owners with flexibility and options when selling their life insurance policy, allowing them to retain a portion of the death benefit for their beneficiaries or negotiate a hybrid offer that includes a cash payment. It can be a beneficial option for those looking to unlock the value of their life insurance policy while still providing ongoing financial protection to their loved ones.
Welcome Funds has multiple buyers that will make RDB offers for your policy
Founded in 2000, Welcome Funds is a nationally licensed broker that represents policy owners who want to sell their life insurance policy in the secondary market. Our institutional buyers compete in an auction bidding process to ensure that we secure the highest offer from the market. We've negotiated over 33,000 offers and provided more than $1 Billion in sales proceeds to our clients. If you are interested in a Retained Death Benefit offer, we will negotiate with each licensed buyer in your home state to ensure that the best offer is secured. Please review our website to learn more about how we can provide professional representation and expert advice on selling your life insurance policy.
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