Introduction to Life Settlements

When a policy owner decides to sell his or her insurance policy before they have passed, it is referred to as a life settlement. The policy owner does not receive as much money as a third party would when the policy owner dies. However, they do receive a large sum. For a life settlement to be valuable, most people need to be older than 70 years of age.

Life settlements are common way for the elderly to increase their wealth. More and more people are choosing to take out a life settlement. Due to growth, the market value of the industry is now estimated at 18 to 19 billion dollars as of 2009.

Life settlements were declared legal by the Supreme Court in 1911. In Grigsby V. Russell, a policy owner’s right to transfer an insurance policy was established. The court treated life insurance as an investment similar to stocks and bonds and thus ruled it was transferable.

Life settlements are highly complex, and selling one must be conducted by a professional. Accountants, attorneys, and financial planners frequently work in this area. Additionally, insurance advisors and wealth managers may have the proper knowledge to conduct a transaction.

Contact Us

If you are considering a life settlement, it is important to find an experienced professional to guide you through the complex process. When financial times are hard, a life settlement can provide a large source of financial income. For more information on whether a life settlement is good choice for you, contact Life Settlements today by dialing 619-489-5556.