A Life Settlement is simply the sale of a life insurance policy that is no longer needed or affordable. Typically, the sale involves an insured that is 70 years of age or older and an investment company that provides the owner with a lump sum cash settlement.
Actuarial Data suggests that a death claim will never be paid on 40 % of all life insurance policies held by people 70 years of age and older. The fact is that 40 % of all life insurance policies will either be surrendered or worse, allowed to lapse.
Life Settlements are an option that seniors need to know about as the later years of life approach and as needs change. Some reports indicate that the average purchase price received by the policy holder in a Life Settlement has been 15 to 20 percent of the policy face value.
A Life Settlement effectively allows the non-negotiable cash surrender value of the policy to become negotiable, thus benefiting the policy holder immensely.
Have your life insurance policy appraised and learn its true value, it is very likely that your policy is worth much more than your insurance company is willing to give you if you surrender it.
