North Carolina Life Settlements
The use of Life Settlements in North Carolina has been expanding rapidly, as it has in many other areas of the country. As more and more residents are becoming aware of this practice, the value in using a life settlement quickly becomes apparent. However, many seniors are still unclear on how this process works. It all starts by finding the somewhat hidden market value that an owner has in a life insurance policy. After an appraisal of the policy, a life settlement company will purchase the policy for significantly more than the rather small cash surrender value, but less than the policy’s end of life benefit.
Reasons for pursuing this type of settlement could range from requiring a less amount of coverage, to finding a better investment option for value in the policy. More often though, the benefit found in life settlement is used to pay for the increased cost of senior care. Even through careful retirement planning, an unexpected medical event can require either costlier care or an entirely new type of care. When this happens to you or a family member, you may find holding on to a life insurance policy becomes less important.
The way that states have chosen to regulate life settlements can vary quite greatly. North Carolina has required that the life settlement provider as well as the broker be licensed by the state. This provides a greater level of consumer protection than other states which have decided not to have these requirements. As these issue are changing constantly, it important to use trusted resources to stay current on the latest developments for life settlements in your state.