Retained Death Benefit in Fort Lauderdale – Cash Now and Coverage Later

If you’re a Fort Lauderdale resident looking to sell your life insurance policy but still want to leave something for your loved ones, you don’t have to choose between cash today and coverage for the future. With a Retained Death Benefit (RDB), you can have both.

At Summit Life Insurance, we specialize in helping Florida policyholders turn unwanted life insurance policies into financial security, while keeping part of the death benefit intact for their family.

What Is a Retained Death Benefit?

A Retained Death Benefit is a life settlement option where you:

✔ Receive an immediate cash payout for part of your policy.
✔ Keep a portion of the death benefit, paid to your beneficiaries later.
✔ Eliminate premium payments—the buyer takes over.

This makes it a great choice for people who want to stop paying expensive premiums, access cash for retirement or medical expenses, and still leave a legacy for their loved ones.

Why Consider a Retained Death Benefit in Fort Lauderdale?

Many seniors in Fort Lauderdale find themselves in situations where:

✔ Premiums have become too expensive.
✔ They no longer need the full coverage amount.
✔ They want liquidity for retirement, debt payoff, or healthcare.
✔ They still want to provide something for their heirs.

A Retained Death Benefit gives you the best of both worlds: cash now and security for the future.

How Does a Retained Death Benefit Work?

Here’s how Summit Life Insurance structures an RDB settlement:

1. Policy Review – We evaluate your policy type, face value, and premium costs.

2. Benefit Allocation – Determine how much cash you receive now and how much death benefit remains for your family.

3. Market Your Policy – We shop your policy to multiple licensed buyers for competitive offers.

4. Finalize & Close – You get paid, premiums stop, and your retained death benefit is guaranteed.

Example Scenario

Mary, age 75, owns a $500,000 universal life policy with a $650 monthly premium. She doesn’t need full coverage but wants to leave something for her children.

With a Retained Death Benefit:

✔ Mary receives $60,000 in cash immediately.
✔ Keeps $150,000 in death benefit for her heirs.
✔ Pays $0 in future premiums.

This gives her financial relief and peace of mind.

Who Qualifies for a Retained Death Benefit?

You may qualify if you:

✔ Are 65 or older (or younger with health impairments).
✔ Have a policy with $100,000 or more in face value.
✔ Own whole life, universal life, or convertible term insurance.
✔ No longer want to pay premiums but still want partial coverage.

Retained Death Benefit vs Full Life Settlement

If your goal is maximum cash, a full life settlement may be better. If you still want to leave some protection for your family, RDB is the smarter choice.

Tax Implications

Just like life settlements, retained death benefit arrangements may have taxable portions:

✔ Premiums paid → Tax-free.
✔ Gain up to cash value → Ordinary income.
✔ Above cash value → Capital gains.

Always consult a tax professional for your situation.

Why Work With Summit Life Insurance in Fort Lauderdale?

✔ Licensed & Local Experts – We know Florida’s life settlement regulations.
✔ Access to Multiple Buyers – More competition = better offers for you.
✔ Transparent Process – No surprises, no hidden fees.
✔ Personalized Solutions – Whether full settlement or RDB, we find what’s best for you.

FAQs About Retained Death Benefit

1. How much death benefit can I keep?
Usually 10%–30% of the original policy, depending on the offer.

2. Do I pay premiums after the settlement?
No. The buyer takes over premium payments.

3. Is this legal in Florida?
Yes. Florida regulates life settlements, including RDB options, for your protection.

4. How long does it take?
Most cases close in 30–60 days.

Final Thoughts

If you live in Fort Lauderdale and want to unlock cash from your life insurance without giving up everything, a Retained Death Benefit may be the perfect solution.

At Summit Life Insurance, we make the process simple, legal, and stress-free. We help you stop paying premiums, get cash now, and keep coverage for your family.

Contact Summit Life Insurance today for a free, no-obligation consultation and see how much you can retain.