Lapsing Life Insurance Destroys Consumer Value

Wasted U.S. Consumer Value Universal Life 88% 88% of all Universal Life Insurance never results in a claim. 4.5% Annual Lapse Rate of All U.S. Life Insurance. Every single year, 4.5% of American life insurance policyholders lapse their policy, simply handing over all of their premiums to their insurance company as pure profit. Eligible for Life Settlements Several hundred billion dollars worth of life insurance is eligible for life setlements and should be sold to investors instead of lapsing the policy. 20% Avg. amount of death benefit paid out in a life settlement. Why People Lapse OVID No Longer Afford the Policy No Longer Need the Policy Often times, premiums become more expensive the older the insured becomes. Other times, policyholders either didn't save enough for retirement or fell on economic hardship. Over time our needs change, including the need to support a beneficiary. Our children grow up and become financially stable. Sometimes our spouse passes away first.