A
life settlement is when someone sells their life insurance policy to get money while they are still alive. The buyer takes over paying the premiums and will receive the full benefits when the original policyholder passes away.
Full definition
In addition, most states require that consumers are provided with information about alternatives to settlements, risks related to taxation and government assistance, and the licensing of
life settlement brokers and providers.
Thus, while there are a number of valid concerns, in practice the evolution of professional
life settlements companies have helped to mitigate or minimize most of the issues.
Life settlements offer an additional option for life insurance policy owners to consider when deciding what to do with a policy they no longer want to own.
Many states now require life insurance carriers to notify policy owners about
life settlement options when they are about to lapse a policy.
If you think that everyone will soon live to be 120 years old, you should stay away from
life settlement funds.
Although most providers try to acquire life insurance policies
through life settlement brokers and life insurance producers, lately, an increasing number of them are directly marketing to consumers.
I've finally seen, as a life insurance agent, the kind of changes that have me ready to
consider life settlements as viable options for some of my clients.
This can be a big deal for some because you have to have sufficient cash reserves to qualify to buy
into life settlements for just such a contingency.
This disconnect suggests that many advisors are simply unaware of
how life settlements work and how they can benefit their clients.
For those that are planning on using qualified funds to
purchase life settlements they will continue to defer taxes because the money is growing in a tax - deferred account.
For
most life settlements, there is no mysterious stranger on the other side of the transaction — it's most likely a huge corporation, a large bank or a major hedge fund.
The typical investors in
life settlement portfolios are sophisticated entities such as banks, insurance companies, pension funds and hedge funds.
Life settlements increase the policyholder's quality of life and financial health, but all of this only makes sense if policyholders no longer need their life insurance policies.
The guarantees of
life settlements free up time for the individual and also deliver on the second main goal.
Phrases with «life settlement»