Life Settlements and The Financial Professional
A financial tool used by senior policy owners and financial advisors applied to life insurance creating money in excess of cash surrender value.
synonymous with: Senior Settlement
Understanding Life Settlements
A life settlement is the sale of an existing life insurance policy that is not performing up to expectations or just no longer needed. Life settlements enable qualifying policy owners to receive fair market value for their policies by accessing the secondary market for life insurance.
Any number of situations can create the need for a life settlement:
The reason why a policy was purchased can change over time. And when that happens, a life settlement may be an ideal option.
Life Settlements offer a unique opportunity both to the insurance and financial professional and the policyholder. As circumstances change, the ability to obtain cash from the sale of a life insurance policy can be particularly valuable. The majority of Life Settlements transactions are entered into for the purpose of purchasing other valuable insurance and financial products. Life Settlement proceeds are unrestricted and can be used to fulfill a wide range of financial and estate planning objectives for your client. The settlement amount is determined by such factors as the policy parameters, age, and health of the insured.
Potential Benefits to the Financial Professional:
Benefits for the Corporate Policy Holder
The life settlement process begins with, a sophisticated valuation system, to determine the market value of a life insurance policy. Here is how the process works: