Why Life Settlements
Many American seniors—typically those 70 years of age or older—are discovering that life insurance policies that once seemed appropriate, have become unaffordable or no longer meet their needs. As a result, many of these seniors lapse or surrender their policy back to the insurance carrier. In fact, policies with more than $100 billion of face value are lapsed by seniors over age 65 each year, mostly because they are unaware an alternative may be available – including the sale of the policy.
The majority of policies sold in the secondary market for life insurance are universal life insurance policies, though any type of insurance policy can be considered, including term insurance.
Policies may be owned individually or through a corporation, foundation, trust, non-profit organization, or business. It is also very important that all beneficiaries understand the process, agree to the sale, and are actively involved in the sales process.
The market is well-regulated affording policy holders comprehensive protection under state life settlement laws.