What are Life Settlements?

A Life Settlement is a financial transaction whereby a policy owner holding a life insurance policy sells this policy to a third party for a higher cash settlement value than if returned to the issuing life insurance company.

The purchaser of the policy becomes the owner and beneficiary of the policy at maturity and is responsible for all remaining premiums.

Policy owners looking to sell their policy are seeking out Life Settlement brokers to gain access to this market and in turn receive a fair market value for their policy.

Why do people sell their life insurance policies?

There are many reasons why people want to sell their life insurance policies:

- The policy is no longer needed or wanted;

- The owners of these policies want to receive much needed cash and live out their remaining years in dignity;

- Allow them to seek the medical treatment they require;

- Forced liquidation – divorce, hardship, etc.;

- Changing estate planning needs.