Life Settlement and Secondary Insurance Solutions

Life Settlement and Secondary Insurance Market Solutions

Life Settlements Explained

Life settlements are an increasingly popular but often misunderstood financial tool that can transform unneeded or unwanted life insurance policies into lump sum cash settlements. A Life Settlement involves the sale of an existing life insurance policies whose funds generated are greater than the policies’ surrender values.

As is sometimes the case (sometimes more than 85% of the time) the original need for the policy has changed, the premiums have become a burden or the client may want to eliminate the policy by letting it lapse. The life settlement market allows the client to obtain market pricing for the policy. Why let a policy become a wasted asset when, in many instances it can generate substantial capital from a policy that is no longer needed?

Why Do Clients Sell?