Retained Death Benefit (RDB) Life Settlements

An RDB offer is a life settlement option that allows a policy owner (seller) to retain a portion of their life insurance policy’s death benefit, for the beneficiary of their choice, in place of receiving a cash-only lump sum settlement (a typical life settlement offer).
- Hybrid offers can also be negotiated that includes a cash payment to the seller in addition to the retained death benefit. The life settlement fund that purchases the policy becomes the policy owner and takes over 100% of the premium costs. When the death claim is made, the seller’s beneficiary is paid directly by the life insurance carrier, and the fund receives their contracted portion of the policy’s death benefit.