All About Life Settlement in Easy Words

Life Settlement is the final settlement amount paid to the life insurance policy owner in return of the policy’s ownership. Life settlement makes it possible for the insured to sell his/her policy at a greater price than its normal surrender value offered by the insurance company at the time of maturity. The life settlement process works in a very simple way. In case you do not want to continue with your life insurance coverage anymore and intend to sell it, then a life settlement broker can help you locate a potential investor, who will buy your policy for a specific amount. Once you sell your policy, the buyer becomes the policyholder and is responsible to pay the rest of the premiums.

 Life settlement funding requires you to pay no out-of-pocket fees or an upfront amount. The amount you receive is not based on the value of the assets you own or your income. You can use the money the way you want to, for instance for covering your medical costs or clearing your debts. The life insurance settlement broker you hire is entitled to a specific fee. However, you are not responsible for paying the fee, as it is already included in the offer.

Life settlements investment offers are mainly available to those who are 70 or above. Moreover, one should only own an insurance coverage that has been active for at least a period of 2 years. Above all, the policy should have a benefit amount of minimum $250,000. Make sure you hire a highly qualified and a professional life settlement broker, who can assist you during the entire procedure.