HOW A LIFE SETTLEMENT WORKS
A Life Settlement is a process wherein an insured person agrees to sell his or her unwanted insurance policy to another party for a cash lump sum, instead of returning it to the company where he acquired it. After making the payment, the purchasing party becomes the beneficiary of the policy. From thence, the buyer is the one responsible of paying the rest of the premium until the seller dies and he collects all the benefits. ...
WHO IS BUYING MY LIFE INSURANCE POLICY?
One of the most commonly asked questions in the secondary insurance market is who is buying my policy. All insured's have a right to know, that when they sell their life insurance policy who is going to gain from their death. In America, all buyers of insurance policies must be institutional in nature. A life settlement investor must be a qualified institutional buyer as defined in the federal Securities Act of 1933. ...
POLICY TRADE FOR A PAID UP DEATH BENEFIT
Trading in your policy for a fully paid up guaranteed death benefit. Life insurance policies are one of life's many necessities. But even so, regularly paying for its premiums can be too much of a burden to its owners, especially if the life insurance policy is relatively expensive due to unfavorable underwriting or a higher than appropriate death benefit. Senior citizens who still hold life insurance policies taken out when they were younger to provide a windfall for their family should the unexpected may no longer have a need for the high amount of coverage or find that the premiums have become too expensive may have other needs for the premiums paid to the life insurance companies such as rising medical costs. ...
LIFE SETTLEMENT FOR BUSINESS (KEY MAN INSURANCE POLICIES)
Life Settlements are not merely for personal uses alone. Large businesses and companies have a big use for Life Settlements as well. Companies normally insure the key executives of their organization, also known as "Keyman Insurance", such that if anything unfortunate happens to them, like getting involved in an accident, or if they die while still holding their position, the company collects the death benefit to offset financial strains following the loss. Keyman insurance can amount to millions in policy face amount and premiums paid by the business. ...
ARE YOU A LIFE SETTLEMENT CANDIDATE?
These days, policy holders should be aware of all the options available to them concerning their life insurance polices. Normally, if a death benefit is not collected, policyholders either allow their policies to lapse, or surrender the policy for the current cash value. However, many policyholders are not aware that they may have the option of selling their policy for an amount generally greater than the cash value in a life settlement transaction. ...
DON'T LET YOUR POLICY LAPSE, SELL IT FOR CASH
Traditionally, purchasing a life insurance policy meant that if after a time your situation or circumstances changed and you found your life insurance policy was no longer needed or was too expensive, you could cancel the policy and receive a lump sum of cash for the surrender value at most. These days however ...