Rhode Island Life Settlements
The practice of using a life settlement in Rhode Island involves locating the often underutilized value in a life insurance policy. Although many are still relatively unfamiliar with this procedure, the use of life settlements has grown dramatically in recent years. The process works by selling an in-force life insurance policy to a life settlement company for more than the surrender value, but less than the value of the death benefit. The policy and premium payments are then taken over by the company for the rest of the original owner’s life. The fair market value gained from this policy can then be used by the owner to pay for a variety of care options, such as nursing home, assisted living or even at home care.
Although the use of life settlement has been around longer than most people think, each state has chosen to deal with these types of financial transaction in their own and often very different ways. Life settlement still have no regulation by the state government of Rhode Island. The sale of a life insurance policy can be completed by a financial institution without government restriction. Because of this, brokers of the sale do not have to obtain a special license to perform this practice. It is crucial that policy owners educate themselves on this process before entering an agreement to sell a life insurance policy.
If meeting the financial needs of senior living has proved more difficult than originally thought, you are not alone. Before you discard your life insurance policy because you think you can no longer afford it, explore the option found in a Rhode Island life settlement.
Rhode Island Department of Business – Insurance Regulation homepage