Description:
A “Life Settlement” is a lump sum payment to the owner of a life insurance policy by one of many funding sources in exchange for the ownership of the policy. Never before have non-terminal policyholders been able to receive capital in excess of their policy’s cash or surrender value to increase their cash flow.
Generally, anyone over age 65 who has $100,000 or more in life insurance coverage that is beyond the period of contestability may qualify for a Life Settlement regardless of health condition. Other factors considered in the negotiations are the policy’s cash surrender values and the cost of premiums. A basic principle to remember is that the older the age of the insured and/or the more health complications that exist, the higher the settlement.
Generally, anyone over age 65 who has $100,000 or more in life insurance coverage that is beyond the period of contestability may qualify for a Life Settlement regardless of health condition. Other factors considered in the negotiations are the policy’s cash surrender values and the cost of premiums. A basic principle to remember is that the older the age of the insured and/or the more health complications that exist, the higher the settlement.