If you’re considering a life settlement or viatical settlement but still want to leave something for your loved ones, a Retained Death Benefit (RDB) could be the perfect solution. At Summit Life Insurance, we help policyholders in Fort Lauderdale explore this flexible option to secure immediate cash while preserving a portion of their policy’s death benefit.
In this guide, we’ll explain what a retained death benefit is, how it works, and why it might be the right choice for you.
What Is a Retained Death Benefit (RDB)?
A Retained Death Benefit (RDB) is a feature available in some life and viatical settlements where the seller keeps a portion of the original death benefit while receiving a lump-sum payment for the remainder.
How It Works:
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You sell a percentage of your life insurance policy to a third-party buyer.
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The buyer pays you an upfront lump sum for the portion they purchase.
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You retain a portion of the death benefit, which will be paid to your beneficiaries when you pass away.
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The buyer assumes responsibility for future premium payments on the portion they own.
Who Should Consider a Retained Death Benefit?
An RDB is ideal for policyholders who:
✅ Need cash now but still want to leave an inheritance.
✅ No longer need the full death benefit but aren’t ready to surrender the policy entirely.
✅ Want to stop paying premiums on the portion of the policy they sell.
✅ Have a chronic or terminal illness and want to maximize financial flexibility.
Benefits of a Retained Death Benefit
1. Immediate Cash Without Losing Full Coverage
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Get a lump-sum payout for immediate needs (medical bills, debt relief, retirement income).
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Keep a portion of the death benefit for your loved ones.
2. No More Premiums on the Sold Portion
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The buyer covers future premiums for the portion they purchase.
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You only pay premiums on the retained portion (if applicable).
3. Tax Advantages
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In viatical settlements, proceeds are often tax-free if you meet IRS criteria.
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Retained benefits pass to beneficiaries tax-free under standard life insurance rules.
4. Flexible Options
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Choose how much of the death benefit to sell vs. retain (e.g., 70% sold, 30% retained).
How Does the RDB Process Work?
At Summit Life Insurance, we make the process simple:
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Policy Review – We evaluate your policy and discuss your financial goals.
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Customized Offer – Buyers submit offers based on how much you want to sell vs. retain.
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Choose Your Terms – Decide what percentage to keep and what to sell.
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Receive Funds – Get your lump-sum payment quickly (often within weeks).
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Beneficiaries Receive Remainder – The retained portion pays out to your loved ones tax-free.
Why Choose Summit Life Insurance for an RDB in Fort Lauderdale?
When exploring a retained death benefit in Fort Lauderdale, you need an experienced and ethical broker. Here’s why Summit Life Insurance stands out:
✔ Local Expertise – We understand Florida’s regulations and market trends.
✔ Transparent Process – No hidden fees; we explain all options clearly.
✔ Competitive Offers – We negotiate with multiple buyers to maximize your payout.
✔ Compassionate Service – We help you balance immediate needs with legacy planning.
Is a Retained Death Benefit Right for You?
Consider an RDB if:
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You want cash now but still want to leave an inheritance.
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You’re sick or elderly and no longer need the full death benefit.
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You’re tired of paying high premiums but don’t want to lapse the policy.
Get a Free Consultation Today
If you’re interested in a retained death benefit in Fort Lauderdale, Summit Life Insurance can help you explore your options with no obligation.
📞 Call Summit Life Insurance today to discuss how an RDB can provide financial freedom while protecting your family’s future!
