North Dakota Life Settlements
Like the rest of the country, North Dakota has begun to discover the use of life settlements agreements. This process, though still little known to some consumers, has the potential to add much need funding when it is needed most. A life settlement takes place when an owner of a life insurance sells the policy to a third party in exchange for a sum of money that is greater than the comparatively small cash surrender value, but less than the death benefit therein. There are a number of reasons that this can be a helpful option for those in their elder years. Sometimes seniors realize they have a larger life insurance policy than they need and could better use the value toward something else, like a different investment or a gift to heirs. Most will find the best opportunity to use this asset when confronted with health and long term care cost that were either unforeseen or greater than expected. When this happens a life settlement can provide just the breathing room and peace of mind that is needed.
Some states have decided to treat the use of life settlements in different ways. North Dakota has taken action to help protect consumers in these transactions. Like other states, a requirement that both the broker and the life settlement provider be licensed by the state is seen as a very positive step. Some states that have chosen to keep life settlements unregulated are finding the problems this creates like a increased risk for incidents of fraud. Whatever decision you are contemplating regarding how best to use your life insurance, do your homework and find out the latest developments in North Dakota life settlements.