What You Need to Know about Life Settlements
Life settlements are not something that you hear about every day. Most people have never heard of them, and probably do not know they exist or how they work. A life settlement is a financial transaction through which the policy owner of a life insurance plan sells their plan to a third party purchaser for more than the cash surrender value that the insurance company offers. The purchaser then becomes the beneficiary of the policy, and takes responsibility for all subsequent premium payments.
In general, life settlements can be done by policy owners 65 years old or older, with a high-net-worth. Typically, this means that to be eligible for a life settlement, you must meet the following guidelines:
- 65 years or older (Some policy holders can be as young as 55)
- $50,000 minimum face amount on your policy
- Your policy has been active for at least two years
- There is a low cash surrender value for your policy
- Your premiums are less than 8% per year
- Your policy is: Universal, Term, Whole Life, Variable Life, Survivorship, Adjustable Life, or Joint First to Die
It is estimated that around 20% of policies have a market value that is higher than the cash surrender value. That could be your policy.
Learn More about Life Settlements
If you would like to know more about life settlements, visit
www.lifesettlementsandyou.com.
A Life Settlement may provide you or your client with the best financial solution possible. Please Chat with one of our live Consultants or Fill out this form and a trained specialist will contact you to answer all your questions, and provide you or your client the safety and security that only an Institutional Funder can assure.
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