Coventry: Coventry, a provider of life insurance secondary-market solutions, is urging policyowners and financial professionals to review the value of existing life insurance policies and consider alternatives before allowing coverage to lapse or surrendering it.

According to BERNAMA News Agency, the company emphasized that life insurance can offer financial protection for families, support estate planning, and address business needs. However, policyowners are advised to reassess their options as financial circumstances and coverage needs evolve.

"Americans hold more than US$14 trillion of individual life insurance, yet hundreds of billions of dollars of that coverage is surrendered or allowed to lapse every year," stated Coventry chief executive officer, Reid Buerger, in a statement. He highlighted the importance for policyowners and their advisers to explore alternatives before terminating valuable coverage, pointing out that life settlements can provide proceeds significantly above a policy's cash surrender value.

A life settlement allows eligible policyowners to sell an existing life insurance policy in the secondary market rather than surrendering or allowing it to lapse. This process potentially offers additional value from coverage that is no longer required.

Coventry advised financial professionals to consider a range of factors when reviewing an existing policy. These factors include its performance, the future cost of maintaining coverage, the available cash surrender value, and whether selling in the secondary market could yield a better financial outcome for the client.