![]() The key parties in a life settlement are the policyholder - that’s you - plus the life settlement provider, life settlement broker, and the life settlement company. If you are younger than 65 but terminally or chronically ill, you may alternatively qualify for a viatical settlement - a related transaction type that also results in the sale of your policy for cash. Many policy types qualify, including individual life insurance, group life insurance, most permanent life policies, and even convertible term policies. ![]() To qualify for a life settlement, you must be 65 years old and the owner of a sellable life insurance policy. Bidding naturally drives the price higher, which is why brokers tend to generate the highest proceeds for selling policyholders. You can sell the policy directly to a provider, or you can work with a broker to have multiple providers bid on your policy. The provider pays you cash and takes over your policy, including responsibility for premium payments and ownership of the death benefit upon your eventual passing. What is a life settlement?Ī life settlement is the sale of your life insurance to a buyer, called a life settlement provider. Harbor Life Settlements created this list of the top life settlement companies of 2023 to help you choose the right partner to maximize the sales price of your life insurance. That can create a lot confusion about the role these service companies offer and which company might be best suited for your situation. For the senior who’s already considering surrendering life insurance, if only to get out of paying the premiums, a life settlement can provide a much higher cash value.Īs these transactions grow in demand and popularity, so do the number of companies offering services related to life settlements. It’s an attractive strategy for underfunded retirees because the net proceeds are usually higher than the policy’s surrender value. In a life settlement, a senior sells an individual or group life insurance policy to a third-party buyer for a single cash payment.
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |