Life Settlements and Senior Settlements Information
Life Settlements, sometimes referred to as Senior Settlements, Life Insurance Settlements, but not Viatical Settlements, can provide a powerful financial planning tool. A life settlement often represents found money for a policy holder by providing a lump sum of cash for the liquidated policy of between 10 - 75% of policy face value irregardless of cash value. There is no guarantee that you will receive more than cash value until your have your policy underwritten and enter into an agreement with the funding company.
Life Settlement Proceeds and Payoffs
The cash proceeds of a life settlement transaction can be utilized to satisfy other financial needs as they occur. The cash settlement can be utilized to purchase annuities, mutual funds, other investments or long term care. If some insurance is still needed, a portion of the lump sum can be utilized to purchase a more appropriate and better preforming policy.
Life Settlement Qualifying Information
Any type of in force insurance policy can qualify for a life settlement transaction. Term policies, universal life, whole life, survivorship, key man, etc. all can be utilized. These policies can be owned by groups, individuals, corporations, charitable institutions or any entity. The insured should be over 65 years of age (or with major health issues) and the policy in force for over 2 years. The minimum face value is $100,000. Each case is look at indivual and every situation is different. Also the life settlement industry is constantly growing and parameters are changing. Generally, seniors over 65 with a history of poor health and older seniors are able to participate.
Resources: Life Settlement Auction - Life Settlement Information - Life X - Life Exchange
