An Introduction to Senior Life Insurance Settlements

2007-03-08 10:33:40

( Financial )



What are Senior Life Settlements?

When senior citizens liquidate their life insurance policies in exchange for a lump sum of cash, these transactions are called senior life insurance settlements. The money produced from these sales can be utilized in any way that the senior citizens deem appropriate, such as for medical expenses, mortgages, etc.

To better understand life insurance settlements, keep in mind that insurance policies are also assets that you can buy or sell. If you feel that your insurance policy is not benefiting you at the moment, you can choose to sell it to a life settlement company for cash. The value you will receive should be considerably higher than the stated cash surrender value of your policy. In other words, life insurance settlements allow you to get more money for your policy than you otherwise can.

The companies that buy life insurance policies are called life settlement providers. There are many providers in the market today, and not all of them will offer the same prices for your policy. Before deciding in a particular provider, be sure to compare and contrast the amounts they are willing to pay you. Also, keep in mind that you can only sell policies that you own. If you are currently managing other people’s policies, you will need to obtain permission before you can sell them and acquire life settlements.

How do you get life insurance settlements?

To get senior life settlements, you will need to contact a life settlement provider. You will be provided with an application. You will need to complete this application and sign medical release forms. Sometimes, you will be required to provide your medical information as well. You need not worry; all information will be kept confidential and cannot be released without your permission. If the provider feels that you are qualified, you will receive an offer for your policy. You can choose to accept this offer. Once you accept, however, you will be required to sign a contract. Be sure to read this carefully before you proceed.


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