What is a Life Settlement?

By: Benjaminthompson
A life settlement is proof that a life insurance policy is a valuable personal asset. Those with high premium payments or other reasons for selling can do so if they are over 65 and meet the required life expectancy.

A life settlement is a product for seniors (generally over the age of 70) who are seeking an economically sensible exit strategy from unwanted life insurance policies. A life settlement transaction involves the sale of an existing life insurance policy, typically valued at $250,000 or more, to an institutional investor (known as a provider) in exchange for a lump-sum payment greater than the cash surrender value, but less than the death benefit.

A Life Settlement is the sale of an existing life insurance policy by an individual who is typically 65 years of age or older. All things change with time, including your life insurance coverage needs. A life settlement is the sale of your life insurance policy for more than the surrender value of your policy.

A Life Settlement is a powerful new tool that allows you to help your clients maximize the full potential of their life insurance policies. A life settlement is an alternative option to surrendering a policy or letting it lapse by not paying premiums. Often a person no longer wants to maintain life insurance, even though it has monetary value.

A life settlement is not a viatical. Viaticals are purchases of policies of the terminally ill with a life expectancy of two years or less.

A life settlement is a transaction in which an insured person sells a life insurance policy to a third party, receiving a fraction of the death benefit of the policy. The buyer pays the premiums on the policy and collects the benefit when the person dies.

A life settlement is when a person insured by a life insurance policy sells his policy to a third party, often an investment company. The investment company pays a percentage of the policy's value in a lump sum cash transaction.

A life settlement is the sale of a life insurance policy to an institutional investor for a cash payment that is greater than the policy's cash surrender value. The platform for the life settlement industry was created in 1911 by virtue of Grigsby v. Russell
Life Insurance
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