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Life Settlements

Life settlements also well-known as life insurance settlements, senior settlements, or senior life settlements have rapidly become a vital tool for insurance agents, financial planners, estate planners, senior law attorneys, and other financial related professionals. Life settlements are an imperative development. They have started a secondary market for life insurance in which policy owner’s can access reasonable market value for their policies, fairly than accepting the lower cash surrender value from the issuing life insurance company.

A life settlement is the sale, task, transfer, or legacy of the death benefit or possession of a life insurance policy by the holder of the policy where the insured does NOT have a shattering or life-threatening illness or condition. In general, the owner of the policy obtains cash (normally an amount larger than the cash surrender value in the policy, but a lesser amount than the full amount of the death benefit); and the life settlement company becomes the newest owner and beneficiary of the policy and is liable for the payment of all future premiums. Ahead the death of the insured, the death benefit is paid to the life settlement company. Life settlements typically involve the sale of life insurance policies by holder where the insured is a senior citizen or where the insured could have a medical condition that will probably result in a shortened life expectancy. A life settlement is a financial operation in which a policy holder owning an unneeded or unwanted life insurance policy sells the policy to a third parties for the value higher than the cash surrender value (cash value obtainable by the life insurance company). The buyer becomes the original beneficiary of the policy at maturation and is liable for all following premium payments.

The typical criteria to be an eligible candidate for a life settlement would include:

• Policy owners age 65 and older (ages as low as 55 are doable)
• $50,000 least (minimum) face amount
• Policy active bare minimum of two years
• Very Low cash surrender value
• Premiums a lesser amount than 8% per annum
• Insurance Policy kinds
   o Universal Life
   o Term (if convertible)
   o Whole Life o Variable Life
   o Survivorship (any kind)
   o Adjustable Life
   o Joint First to Die

The earnings from a Life Settlement operation can be taxable. Characteristically, the taxable earnings are based on the disparity between the cost basis of a policy (the money paid in) and the cash “surrender” value and the final settlement amount obtained by the policy holder as to what is measured taxable.

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» Life Settlement Advisor
» Life Settlement Broker
» Life Settlement Provider
» Life Settlement Agent
» Life Settlement Expert
» Life Settlement Values
» Life Settlement Companies

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