A life settlement or senior life settlement is the transfer of a life insurance policy from the policyholder to a licensed Life or Senior Settlement funder. By definition, the market value is greater than the life insurance cash value but less than the net death benefit.
The transaction involves the policy owner's transfer of ownership rights to the Life Settlement funder, which then pays all premiumsóthe life insurance cash value, and ultimately receives the insurance benefits.
Most policies are lapsed because of costs or other financial strains. Few senior policy owners realize that their policy might bring 5% to 25% of the death benefit through life insurance settlements or senior life settlements. On average, Life Settlements are at least three times larger than policy cash surrender values.
Seniors wanting more cost-effective insurance are being aided by the new Mortality Table, better product designs, and premium financing. Many others no longer need coverage but want more cash than the policy's surrender value. A Life Settlement can benefit a wide range of seniors as they plan for better retirement, long-term care and other needs.
Policy holders and financial advisors can tap into financial resources that may be hidden in unneeded life insurance policies. Our approach at American Life Settlements is to obtain multiple offers for a Life Insurance Settlement. The minimum age should be 65, and all types of insurance can qualify.
|Not Registered In Texas|
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