Life Insurance Settlement

Life insurance settlement is the term used to describe the sale of a life insurance policy covering the life of one or more individuals with an "ascertainable and limited" life expectancy.There are two types of life insurance settlement transactions. One type involves policies covering individuals who have catastrophic, life threatening or terminal illnesses (also known as Viatical Settlement). The other type involves policies covering individuals over the age of 65 whose health may have declined since the policy was purchased, but not a life threatening situation.  The policy owner is paid a lump sum in cash in exchange for transferring the right of ownership and status as beneficiary of the policy to the buyer.

The need to enter a life insurance settlement transaction are numerous and depends on the circumstances of each individual. Some examples are given below:

• The policy owner needs cash to pay for medical costs.
• The beneficiaries’ situation is such that they no longer need the financial protection by the policy.
• The insured person has outlived their beneficiaries such that there is no longer a need for the policy.
• The financial situation of the policy owner has changes and he/she would prefer to use the money for other purposes instead of paying the insurance premiums.
• A nonprofit organization receives a life insurance policy as a gift but prefer cash.
• The policy was purchased by a business to fund a buy-sell arrangement should one of the partners die prematurely. A change in ownership might make the policy obsolete.

All personal and medical information are kept strictly confidential.

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