Life
insurance is a sophisticated financial planning
asset. Inherent in life insurance design is the
flexibility to manage it’s economic potential
over time and in accordance with changing circumstances.
Life Settlement, also referred to as Senior Settlement,
creates a secondary market which significantly
enhances the utility value of life insurance.
Policies that no longer accomplish the owner’s
financial goals may be sold as Life Settlements
for ‘fair market value’ to a third
party.
Typically, the life insurance
policy purchase price is an amount less than the
death benefit but more than the cash surrender
value. The difference between the cash surrender
value and the purchase price favors the Life Settlement
alternative. The seller receives a cash payment
which is then available to meet current financial
objectives. The purchaser assumes all policy contract
obligations and is the designated policy beneficiary.
For answers to commonly asked questions about
Life Settlement, please visit our Q & A page.
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