Retained Death Benefit in Fort Lauderdale: A Smart Alternative to Full Policy Sales

If you’re thinking about selling your life insurance policy but still want to leave a legacy for your loved ones, a retained death benefit in Fort Lauderdale could be the perfect solution. This innovative option allows you to sell your policy for cash while keeping a portion of the death benefit for your beneficiaries—offering financial flexibility without sacrificing your family’s future security.

At Summit Life Insurance, we help Fort Lauderdale residents explore all their life settlement options, including retained death benefits, to maximize both immediate and long-term value.

What Is a Retained Death Benefit?

A retained death benefit (RDB) is a feature offered during a life settlement that lets the original policyholder:

• Sell their life insurance policy to a third-party buyer for a lump-sum payment.

• Retain a portion of the policy’s death benefit for their beneficiaries at no cost.

This arrangement gives you the best of both worlds: immediate cash for your current needs and a legacy payout for your loved ones after your passing.

How a Retained Death Benefit Works

Here’s a step-by-step look at how a retained death benefit in Fort Lauderdale works with Summit Life Insurance:

1. Policy Evaluation: We review your life insurance policy to determine eligibility for a life settlement with a retained death benefit option.

2. Market Bidding: We share your policy with multiple institutional buyers to find competitive offers that include an RDB component.

3. Offer Selection: We help you choose the offer that provides the best balance of upfront cash and retained death benefit.

4. Transaction Completion: The buyer becomes responsible for future premium payments, and your beneficiaries keep the designated death benefit.

Benefits of a Retained Death Benefit

Choosing a retained death benefit in Fort Lauderdale has several advantages:

• Immediate Cash Access: Get a lump-sum payout to cover medical expenses, retirement needs, or other financial priorities.

• Preserve a Legacy: Maintain a portion of your death benefit for your beneficiaries, even after selling your policy.

• Eliminate Premium Payments: The buyer takes over future premium obligations, saving you money.

• Flexible Financial Planning: Customize the balance between cash now and death benefit later.

• Peace of Mind: Ensure your loved ones are still provided for while meeting your current financial needs.

Who Can Benefit from a Retained Death Benefit?

A retained death benefit in Fort Lauderdale is ideal for:

• Seniors who need extra cash but don’t want to leave their heirs empty-handed.

• Individuals with high premium payments that have become difficult to maintain.

• Policyholders considering a full policy surrender but wanting a better option.

• Families looking for a compromise between immediate liquidity and long-term security.

Retained Death Benefit vs. Traditional Life Settlement

In a traditional life settlement, the seller gives up 100% of the policy’s death benefit in exchange for a higher cash payout.

With a retained death benefit, you receive a smaller upfront cash payment but keep part of the death benefit for your beneficiaries—offering a unique combination of present and future value.

At Summit Life Insurance, we help you weigh these options to find the best solution for your situation.

Tax Considerations

Like traditional life settlements, retained death benefits may have tax implications depending on your specific circumstances.

• The upfront cash portion may be partially taxable.

• The retained death benefit paid to your beneficiaries is usually tax-free under current IRS rules.

We always recommend speaking with a qualified tax advisor for personalized guidance, and Summit Life Insurance can connect you with trusted professionals in Fort Lauderdale.

Why Choose Summit Life Insurance in Fort Lauderdale

At Summit Life Insurance, we specialize in helping policyholders understand and access retained death benefit options.

Here’s why Fort Lauderdale residents trust us:

• Licensed and Experienced: We are a fully licensed life settlement broker in Florida.

• Competitive Bidding: We shop your policy to multiple buyers to find the best RDB offers.

• Personalized Service: We tailor solutions to meet your financial needs and legacy goals.

• Transparent Guidance: We explain every detail so you can make confident, informed choices.

Final Thoughts

A retained death benefit in Fort Lauderdale offers a powerful way to unlock cash from your life insurance policy while still protecting your loved ones’ future. With Summit Life Insurance, you can trust that your financial and family priorities are in capable hands.

Contact Summit Life Insurance today for a free consultation to explore whether a retained death benefit is the right choice for you.