A Life Settlement is the sale of a life insurance policy in exchange for a cash settlement in excess of the policy’s cash surrender value-even if none exists! This innovative wealth and estate planning tool removes the burden of expensive insurance premium payments in addition to providing the lump sum cash settlement.
Life Settlements present a unique opportunity to extract the maximum value from an existing life insurance policy and repurpose those funds for whatever financial needs may exist. In fact, seniors can use the cash settlement for medical expenses, living expenses, or anything they desire-without restrictions.
Today’s marketplace features sophisticated capital institutions on the funding side of the business as well as increased government regulation to protect the insured and policy owner. These changes, along with the proposition being offered and the abundance of eligible life insurance policies, are creating an expanding secondary marketplace.