A Life Settlement is a financial transaction in which the owner of an existing life insurance policy sells the policy to a third party for a negotiated price that exceeds the cash surrender value offered by the insurance company.
Proceeds from a life settlement can be used in any way and are often used by policy holders, together with their financial advisors, to fund other financial products. Today they represent a unique, dynamic planning tool that can help further an individual's financial goals and well-being in many ways.
A Life Settlement allows the policy owner to utilize life insurance as an asset while the insured person is still alive. A policy owner elects to sell their policy for many reasons. Among the prominent reasons:
Just as people choose a Life Settlement for many different reasons, there are a wide variety of benefits to selecting a Life Settlement. Some benefits include:
The unique characteristics and tangible advantages of Life Settlements are often mis-understood. LifeTrust has provided clear answers to some of the most common questions.