What is a Life Settlement?
A Life Settlement (sometimes called a “Senior Settlement”) is the sale of an existing life insurance policy for cash. The policy is sold to a large institutional fund for more than the cash value of the policy. This investment fund (“the Buyer”) gives you, the seller, a lump-sum check and becomes the new owner of the policy. The Buyer also pays all of the premiums going forward. Eventually, the death benefit on the policy is paid to the Buyer.
What were your options before Life Settlements?
Several years ago, if you did not want to continue paying for your life insurance policy, you had essentially two choices:
• You could let the policy lapse.
• You could sell it back to the insurance company that sold the policy to you initially for the “cash surrender value”.
In either case, one thing was certain; the insurance company profited handsomely.
The Better Option - Why Life Settlements?
Your life insurance policy is your asset and an investment, just like your home. When you move from your home, you do not merely abandon it. You can sell it to anyone, and not just to the person that initially sold it to you. That is, you sell your home on the open (real estate) market, most often through a real estate broker. Why should your life insurance policy be any
different?
To what types of insurance policies does this apply?
Life Settlements may apply to virtually all types of life insurance policies except for non-convertible term insurance.
If you have a
policy that is
no longer
needed, wanted,
or affordable,
please contact
us, Today at:
973-275-1110
Integrity LIVE |
