When considering a life settlement, many policyholders are surprised to learn that they don’t always have to give up the entire death benefit. Through a strategy called a Retained Death Benefit, individuals can sell their life insurance policy and still keep a portion of the death benefit for their beneficiaries. At Summit Life Insurance, we help Fort Lauderdale residents explore this powerful option for maximizing the value of their policy without sacrificing legacy planning.
What Is a Retained Death Benefit?
A Retained Death Benefit is a unique arrangement within a life settlement. Instead of receiving a lump sum cash payment for the full policy value, the policyholder agrees to retain a portion of the death benefit. The rest of the policy is sold to a third-party investor, who assumes responsibility for premium payments and receives their share of the death benefit upon the insured’s passing.
This approach is growing in popularity in Fort Lauderdale, where retirees often seek financial flexibility while still wanting to leave something behind for loved ones.
How It Works: A Simple Breakdown
Here’s a simplified overview of how a Retained Death Benefit in Fort Lauderdale works:
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Policy Evaluation – The insured works with a licensed broker like Summit Life Insurance to assess the policy’s eligibility.
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Settlement Offer – Buyers present offers that may include both a cash payment and a retained death benefit.
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Agreement – Once accepted, the buyer pays all future premiums while the seller retains a negotiated portion of the death benefit.
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Legacy Protection – When the insured passes, the retained benefit is paid directly to the designated beneficiaries.
This allows you to unlock the value of your life insurance policy today without giving up your entire legacy.
Why Choose a Retained Death Benefit?
There are several reasons why a Retained Death Benefit in Fort Lauderdale may be a great fit:
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✅ Financial Relief Today: Get immediate access to cash while keeping part of your coverage.
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✅ No More Premiums: You stop paying premiums, as the buyer covers all future costs.
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✅ Protect Your Beneficiaries: A portion of the death benefit still goes to your loved ones.
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✅ Greater Control: You can negotiate the amount retained to meet your financial goals.
At Summit Life Insurance, we help you evaluate your needs and determine whether this solution aligns with your long-term plans.
Who Qualifies for a Retained Death Benefit?
To qualify for a Retained Death Benefit settlement, policyholders generally need:
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A life insurance policy with a face value of at least $100,000
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Aged 65 or older, or with a significant health condition
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A policy that is no longer needed or too expensive to maintain
If you’re a resident of Fort Lauderdale, our local experts at Summit Life Insurance can assess your policy and walk you through your options.
Fort Lauderdale’s Growing Interest in Life Settlements
In Fort Lauderdale, life settlements with retained death benefit options are becoming increasingly common. Many seniors are choosing to leverage the hidden value in their policies to:
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Fund retirement or long-term care
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Pay off debts or medical bills
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Support children or grandchildren
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Simply improve their quality of life
Summit Life Insurance is proud to be a trusted advisor in the Fort Lauderdale community, offering education, transparency, and top-tier service.
Common Myths About Retained Death Benefits
There are several misconceptions about Retained Death Benefits that we frequently address:
Myth 1: “I have to sell my whole policy.”
Truth: You can retain a portion of the benefit while accessing cash now.
Myth 2: “This is only for people in poor health.”
Truth: While health can influence offers, many healthy seniors still qualify.
Myth 3: “It’s too complicated.”
Truth: With guidance from Summit Life Insurance, the process is clear, simple, and stress-free.
Summit Life Insurance: Fort Lauderdale’s Trusted Partner
When navigating complex options like a Retained Death Benefit, having the right advisor makes all the difference. Here’s why Summit Life Insurance is the go-to choice in Fort Lauderdale:
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🏆 Local Expertise: We know Florida’s regulations and the Fort Lauderdale market.
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📋 Free Policy Reviews: No obligation, just expert advice tailored to your needs.
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💬 Personalized Solutions: Every client’s goals are different—we build plans that match yours.
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🔒 Transparency and Trust: We explain every step, every cost, and every opportunity.
Whether you’re just starting to explore your options or are ready to move forward, our team is here to help.
FAQs About Retained Death Benefit in Fort Lauderdale
1. How much of the death benefit can I retain?
It varies based on your policy, age, and health. In some cases, sellers retain 10% to 40% of the benefit. Summit Life Insurance helps you negotiate the best possible terms.
2. Is the retained portion guaranteed?
Yes, the retained death benefit is a binding part of the settlement agreement and will be paid directly to your chosen beneficiaries.
3. Are there any fees involved?
Summit Life Insurance offers free consultations. Any fees will be disclosed clearly before you agree to anything.
4. Can I still qualify if my policy is a term policy?
Possibly. Convertible term policies may qualify for settlements and retained benefit arrangements. Let us evaluate your specific policy.
5. Will my beneficiaries know how to claim the retained amount?
Yes. The agreement ensures that beneficiaries are clearly documented and notified of their rights.
Final Thoughts: Take Control of Your Financial Future
A Retained Death Benefit offers Fort Lauderdale residents the rare opportunity to receive immediate financial support without giving up everything. If you’re looking for a flexible, smart solution that serves both you and your family, it’s time to explore your options with Summit Life Insurance.
📞 Call Summit Life Insurance today for a free consultation and discover how much of your policy you can convert into both cash and a lasting legacy.