Life Settlements

A life settlement is simply the sale of an existing life insurance policy by an older person to a third party in return for a percentage of the face value of the policy paid as an immediate, lump sum payment.

It is a little known fact that policies insuring those age 65 and over (or sometimes younger if the person is ill) can be sold. That's right, policies bought years before that have now lost their utility can be sold - generally for more than cash value. Plus, term policies can be sold, thus bringing present value to an otherwise illiquid asset. This relatively new financial service is known as a "Life Settlement," and there are many funding sources that will begin to look at policies.

A life insurance policy is considered personal property, like a house, car or stocks and bonds. Like those assets, it can legally be bought and sold. You actually transfer all rights and obligations of your life insurance policy to a third party for a percentage of the face value of that policy. The full value of the policy will eventually be paid to the third party.

No medical examinations are required, there is no cost to find out what a policy is worth, and we can find a purchaser for most any kind of life insurance policy (whole life, term, universal, group, and split-dollar policies) issued by most any life insurance company.

Until recently, if you owned a life insurance policy that was no longer needed, you had two choices: