What Are Life Insurance Settlements

Life Insurance Settlements allow a life insurance policy owner to sell an existing policy to a financial institution in exchange for an immediate lump sum cash settlement. The amount paid for the policy is a discounted percentage of the policy's net death benefit and represents the present day value of the policy. This purchase price is determined by considering the insured's estimated mortality (life expectancy) and the associated cost of premiums to keep the policy in force for that timeframe.

There are 2 types of life insurance settlement transactions:

1. Life Settlements create immediate liquidity from a non-performing asset, allowing policy owners to cash out of unwanted, unaffordable or obsolete life insurance policies insuring a senior over age 65.

2. Viatical Settlements enable someone facing a terminal illness to utilize the present day value of their life insurance policy to ease the financial burdens that can be caused by the high costs of medical care.






 
Menu

Viatical Settlements

Investigating Your Options

Eligibility for Viatical Settlements

Insurance Viatical Settlements

Tips for potential viators

Tips for potential investors in viatical settlements

What are Life Insurance Settlements

Investing in a viatical settlement involves risks

Watch for These Other Risks

Secrets to successful viatical settlement investing


© 2006 Viatical-Settlement-With-Life-Insurance.com  All Rights Reserved.

Page Topic: What Are Life Insurance Settlements