Retained Death Benefit in Fort Lauderdale: A Smart Alternative to Life Settlements

If you’re a Fort Lauderdale resident considering selling your life insurance policy, you may have come across the term retained death benefit. This often-overlooked option offers a unique financial advantage—especially for individuals who want immediate cash but also want to leave something behind for their loved ones.

At Summit Life Insurance, we specialize in helping clients explore every financial option available—including retained death benefit arrangements—so you can make an informed decision about your life insurance.

What Is a Retained Death Benefit?

A retained death benefit is a type of life settlement that allows you to sell your policy in exchange for a cash payment, while also keeping a portion of the death benefit for your beneficiaries.

Instead of receiving one large lump sum and giving up the entire policy, you receive:

• A smaller upfront cash payout

• No more premium obligations

• A guaranteed portion of the death benefit remains payable to your beneficiaries when you pass away

This option combines the immediate benefits of a life settlement with the long-term security of traditional life insurance—making it especially appealing to Fort Lauderdale residents managing healthcare expenses while still wanting to leave a legacy.

Who Should Consider a Retained Death Benefit?

This option is ideal for policyholders who:

• Are age 65+ or have experienced a decline in health

• Have a life insurance policy worth $100,000 or more

• Want immediate cash to cover medical bills, retirement, or debt

• Still wish to provide a benefit for heirs or loved ones

• No longer want to pay ongoing premiums

At Summit Life Insurance, we help Fort Lauderdale clients assess whether a retained death benefit is more advantageous than a traditional life settlement or surrender.

Example of a Retained Death Benefit Transaction

Let’s say you have a $500,000 life insurance policy and no longer want to pay the annual $6,000 premium.

• Traditional Life Settlement: You sell the policy outright and receive $150,000 in cash. Your beneficiaries get nothing.

• Retained Death Benefit Settlement: You receive $75,000 in cash, stop paying premiums, and your beneficiaries still receive $100,000 when you pass away.

In this case, the retained death benefit allows you to meet your current financial needs without sacrificing your legacy entirely.

Benefits of a Retained Death Benefit in Fort Lauderdale

✅ Immediate Cash – Receive a lump sum without liquidating retirement accounts or real estate.
✅ Zero Premiums – The buyer takes over the policy payments.
✅ Protect Your Loved Ones – Leave a portion of your death benefit intact.
✅ No More Policy Management – Simplify your finances in retirement.
✅ Tax Efficiency – Depending on your cost basis, part of the payout may be tax-free.

Our experienced team at Summit Life Insurance walks you through the pros and cons of each option—helping you make the best choice for your situation.

The Retained Death Benefit Process at Summit Life Insurance

We make the process simple and confidential for Fort Lauderdale residents:

1. Free Policy Review
   We evaluate your policy, health status, and financial goals to determine eligibility.

2. Market Valuation
   We bring your policy to market and gather offers from institutional buyers.

3. Offer Comparison
   We present you with both full and partial settlement options—including retained death benefit offers.

4. Secure the Agreement
   You select the best deal for your needs, and we handle the paperwork and closing.

5. Receive Your Payout
   Once complete, you receive your cash and your beneficiaries are guaranteed their portion of the death benefit.

All consultations are free, and you’re under no obligation to accept an offer.

Why Choose Summit Life Insurance?

Fort Lauderdale residents trust Summit Life Insurance for our:

• ✅ Local expertise in Florida’s life settlement market

• ✅ Licensed life settlement professionals

• ✅ Access to top-tier institutional buyers

• ✅ Specialization in retained death benefit negotiations

• ✅ Transparent, client-first approach

We’re committed to helping you unlock the best value from your policy—without sacrificing your family’s future.

FAQs About Retained Death Benefit in Fort Lauderdale

1. How much of the death benefit can I retain?
It varies by policy and health condition, but many sellers retain 10–30% of the original death benefit.

2. Will I still have to pay premiums?
No. Once the settlement is complete, the buyer assumes all future premium payments.

3. Is a retained death benefit taxable?
Part of the settlement may be taxable. We recommend working with a tax advisor, and we’ll provide all the documentation you need.

4. How long does the process take?
Most retained death benefit settlements close in 4–6 weeks, depending on how quickly records are submitted.

5. Can I compare full vs. retained benefit offers?
Absolutely. Summit Life Insurance presents all qualified offers so you can make an informed decision.

Ready to Explore Your Options?

If you’re in Fort Lauderdale and curious about life settlements but want to keep a portion of your death benefit intact, a retained death benefit arrangement may be the perfect solution.

Summit Life Insurance offers free consultations to help you understand your policy’s value and explore your options—confidentially and with no pressure.

👉 Contact Summit Life Insurance today to schedule your free policy review and see how a retained death benefit could work for you and your family.