Life seldom works out as planned. A life settlement provider may be able to help you convert your life insurance policy to cash. Life settlement providers are companies, or sometimes individuals, who operate in the secondary market for life insurance. You should not confuse them with life insurance companies. They are in the business of aggregating and buying policies and do not have any fiduciary relationship with their clients.
Life Settlement Blog
Life insurance settlements are a way to monetize a life insurance policy that is no longer wanted or needed. There are tax implications that must be considered. The ability to enter in a life settlement agreement has been legal for over 100 years. It was almost a well-guarded secret, as insurance companies would rather pay the insured the cash surrender value of his or her life insurance policy rather than the full face value to an owner not related to the insured. This is a financial decision by the companies. By being silent about life settlements, they encouraged people to either abandon their policies or cash it in for face value only. This is good for an life insurance company’s bottom line.
Life settlements bring together a willing seller and a willing buyer. As the policy owner, or seller of the life insurance policy, you know exactly what you are getting. When you negotiate and agree to a settlement with the life settlement provider, you receive an agreed amount in the form of a single lump sum. As the buyer of the policy, a life settlement company is making an educated guess on the rate of return they will realize when the insured dies and they can collect the death benefit.
Seniors should have life insurance policies evaluated by a professional before cashing them out for cash surrender value or just abandoning the policy. A life settlement company can help determine if the life insurance policy has hidden value.
Life insurance can be a much needed source of money when you are in your twilight years. Viatical settlements and life insurance loans are two available life settlement options. Learn the similarities and differences when comparing viatical settlements and life insurance loans.
When you were younger and purchased a life insurance policy for a specific reason, but now your circumstance are almost certainly different. The life settlement industry may be your best source for cash when you no longer need to maintain the monthly burden of your life insurance policy premium payments.
A life settlement calculator is a valuable tool that can give the owner of a life insurance policy a good estimate of how much their policy is worth. Many people do not know the value of their life insurance policy. If you are one of those people and let your policy lapse, you may be giving up a substantial sum of money that you could receive through a life settlement in the secondary market for insurance.
Life settlement investment funds consist of a number of life insurance policies that have been purchased from life insurance policy owners. By pooling together a number of settled policies, the fund attempts to earn a risk-adjusted return for the investors in the fund.