Life Settlements Delaware
A Delaware life settlement is where a life insurance policy holder sells their unwanted, unneeded or unaffordable insurance policy for cash. Delaware life settlement regulations have been most recently revised to protect consumers from STOLI, or Stranger-Oriented Life Insurance scams. While there have been older regulations for life insurance fraud, the life settlement industry only just began to kick off and these regulations are closely following.
Delaware life settlement regulations, like many states’, addressed prevention of possible fraud by cracking down on licensing and continual education of life insurance agents and life settlement brokers. Almost complete transparency in agendas from agents and brokers alike regarding commission made off of policy amounts received in life settlement transactions is now being demanded. These amounts and resulting financial records may not be kept private by the broker or agent.
Delaware life settlements come in one of two forms: a viatical settlement or a senior settlement. Senior settlement applicants should be over 75 years of age and have a continued life expectancy up to 19 years. A viaitcal settlement is suitable policy holders with a continued life expectancy of less than two years. A policy holder’s life expectancy is significantly important when considering a Delaware life settlement.