Life Settlements

What is a life settlement? A life settlement is the value in a life insurance policy that can be unlocked that is usually greater than the surrender value of the policy. It is a life insurance policy that can be sold in the seconday market. The insurance policy can be term or universal life. It is also where the insurance policy has become less important for the policy holder, there is no need for it anymore and he or she ha been paying on it for years.

The age band for life insurance settlements is usually between 75-85 years of age. It is also based on the life expectancy of the insured and he or she should have a standard or preferred rating. The age can also be as young as 65 provided the insured has a major medical mality or seroius medical problem. By unlocking more value than the surrender value the of the policy the consumer can use the proceeds from the life settlement to pay for living or medical expenses.

In addition, during this last year of one of the most significant economic downturns in our nation's history,many people amog them seniors have seen their net worth drop as a result of the drop i real estate values and stock market values and stock market values even though the stock market has staged a comeback of sorts. Therefore many seniors are seeing their life insurance policy that has been sitting there for years as a last means of salvaging some of these losses.

Finally, the client can also use part of the proceeds of a life insurance settlement to either purchase another insurance policy or buy an annuity to give them an added stream of income in their later years, or make a charitable contribution if they so choose.

All in all a life insurance settlement is a very valuable option for many seniors.