Key man insurance policies are valuable assets that protect businesses from the financial impact of losing essential personnel, such as executives or partners. However, as business needs evolve, these policies can become underutilized or costly to maintain. A life settlement allows businesses to sell key man policies for immediate cash, transforming a once-strategic asset into liquid capital that can be reinvested back into the company or used for other financial needs.
Settling a key man policy through a life settlement provides several strategic advantages:
Converting a key man policy into a life settlement provides instant funds for business priorities like expansion, debt reduction, or reinvestment.
Selling an unneeded policy frees up capital, allowing it to be directed toward more productive investments.
For businesses no longer needing coverage, a life settlement enables adaptation to current goals like mergers or new initiatives.
A life settlement supplies funds for ownership transfers, buy-sell agreements, or retirement packages, supporting smooth transitions.
A life settlement removes costly premium obligations, providing financial relief while capturing value from the policy.