Senior Settlements – A Wise Option for the Elderly

2007-03-08 10:33:40

( Financial )



Senior settlements or senior life settlement is the selling of life insurance policies to a life insurance settlement company. This is only for policy-holders aged 65 and above. The amount you receive is actually more than the cash value of your life insurance policy but lower than your policy’s face value.

Senior settlements can get you from 5% to 25% of your death benefits. Most senior settlements are also two to three times bigger than your cash surrender values.

If you have financial needs, plans for retirement and long-term care, you can get more cash from your senior health insurance rather than wait for your policy’s surrender value.

Most policies are lapsed because of costs or other financial strains. Hence, if you happen to have this problem, look for cost-effective insurance with new mortality tables, new product features and high value financing.

Selling your senior settlements is easy. Just look for an established life settlement company who acts with discretion and integrity. Most of them will just give you a simple form fill up. They will also gather your medical records and past insurance information only upon your permission.

Processing of application takes from 3 to 6 weeks and the policy's value is determined by prevailing interest rates, premium obligations, and projected life expectancy. Payment of funds is through wire transfer or overnight check delivery.

A most recent senior medical alert is the passage of the Health Insurance Portability and Accountability Act of 1996. If you are afflicted with chronic or life-threatening illnesses, you may be able to receive viatical settlement proceeds free of any Federal income tax. Also, some life settlement transactions may reduce your estate taxes. You can consult a financial planner and estate planner to discuss such tax issues.

Senior settlements is just one of the categories of life settlements. The other two are viatical settlements and high net worth transactions. A viatical settlement allows terminally ill policy-holders to sell their life insurance policies for cash. High net worth transaction on the other hand provides an opportunity for wealthy individuals, businesses and trusts to sell their life insurance policies for cash.


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