What is Life Insurance Settlement?

Win – Win Financial Solution for Seniors!life insurance policy and opt for Life Insurance
A Life Insurance Settlement is the sales of a lifeSettlement or Senior Settlement.
insurance policy to a third party in exchange for aWhy Sell Your Life Insurance Policy?
cash settlement in excess of the cash surrender1. If you are chronically ill, selling your current life
value of policy —even if none exists! This isinsurance policy provides needed funds to cover
also called as Life settlement, Insurancefinancial burdens caused by your illness. A viatical
settlement or Senior settlement.settlement gives you the ability to regain needed
Typically, a Life insurance settlement or seniorfinancial security.
settlement is about three to five times the cash2. If you are over the age of sixty-five, a life
surrender value of the policy.insurance settlement or senior settlement
Life settlement: When an individual who does notmaximizes your current assets by eliminating
have a terminal or chronic illness sells a policy forpremiums and getting funds that can be used
other reasons, including changed needs oftoday.
dependents, wanting to reduce premiums, and3. Pay off debts.
cash for meeting expenses, that is known as a4. Make funds available for other investments.
Life settlement.5. Turn a lapse insurance policy into cash with Life
Viatical settlement: When an individual with asettlement.
terminal or chronic illness sells his or her life6. Pay your medical care bills.
insurance policy that is known as a Viatical7. Finance your retirement.
settlement.8. If you are a corporation, selling corporate
Hitherto, elderly Americans with life insuranceowned life insurance lets you regain back
policies they do not need or cannot afford topremiums paid on no longer needed policies.
keep up have had little option. They will let the9. If you are a non profit organization, selling a
policies lapse or sell them back to their insurers.gifted life insurance policy provides funds that can
Now lots of them are glad to have an alternative,be used now and also eliminates premiums.
i.e. Life Insurance Settlement or Senior10. If you managing an estate, selling your current
Settlement. Seniors may now be able to sell theirlife insurance policy will help manage changes in
policy for far more than the cash surrender valueestate size, eliminate premiums, and liquidate
the insurance carrier would offer.policies that no longer are needed.
When you go for Life Insurance Settlement orWhat Insurance Policies Qualify for Life Insurance
Senior Settlement, the life insurance policy ownerSettlements or Senior Settlements?
sells his or her contractual rights under the policyTo find out whether you qualify, here are some
at its present market value in exchange for aof the requirements.
lump sum cash payment, which payment exceeds(A) Must be at least 65 years of age
the cash surrender value of the policy.(B) The face value of the policy is at least
The purchaser of the policy will then become the$50,000
new owner and the new beneficiary of the life(C) The insured has experienced deterioration in
insurance policy and is then responsible for makinghealth since the insurance policy was issued; life
all of the future premium payments. The newexpectancy is under 15 years
owner now collects the full amount of the death(D) The insurance policy is in effect beyond the
benefit when the insured dies.two year contestable period
Life Insurance settlement or Senior settlement(E) You Are Over 21 with a Life-Threatening
present a unique opportunity to the senior policyIllness – Viatical Settlement
holder to extract the maximum possible valueBut any policy owner, including individuals,
from an existing life insurance policy andcorporations, charities or trusts, may sell any life
repurpose those funds for whatever financialinsurance policy, including group and term policies.
needs may exist.What Types of Life Insurance Polices are
Seniors can use the money received from Lifepurchased?
Insurance Settlement or Senior Settlement, to1. Government issued policies
purchase new insurance, travel the world, start a2. Term Life
business, buy a property or fulfill their dreams.3. Universal Life
The money is theirs to simply enjoy and use it4. Survivorship policies
for any reason they can think of. In fact, seniors5. Many Group types of policies
can use the cash settlement for medical6. Corporate Owned Life Insurance
expenses, living expenses, or anything they7. Whole Life
desire—with no restrictions.8.
There are various reasons why seniors sell their