life insurance settlements

What You Need To Know About A Life Insurance Settlement

2006-05-16T15:37:00.000-07:00

A Life insurance settlement is often referred to as a Senior Settlement. A life insurance settlement occurs when a policyholder (who is not terminally ill) decides to sell their policy to an investor for a part of the face value. The investor takes over the premium payments and gets the death benefit when the policyholder dies. This is a good option for older people who bought policies years ago when they were needed, but now the premium is so high it is not worth paying for, or the benefit is so excessive that it is not needed.

Although life insurance settlements are not a well-known procedure they are a good way for policyholders to get rid of unwanted policies, and often the policyholder gets more money from it than simply surrendering the policy would get them. Often the amount earned through life insurance settlement is twenty to twenty five percent more than the surrender value of the policy. More people are becoming informed about life insurance settlements. This can be seen in the rise of life insurance settlement deals with different brokers. One company expects over five billion dollars in life insurance settlement deals next year.

There are a few requirements that companies are looking for when they buy a life insurance policy. One is that most require that the policyholder be at least 65 years old, and be in generally good health. Your policy will also sell for more if interest rates are low, if your premium is low, and if the policy is past the “contestable period,” which is a time when the insurance company could modify or even deny the policy.

When a policyholder wants to sell, the value of the policy needs to be found. This is done by filling out an application, including medical and policy information release forms. A broker obtains medical reports, and other needed information, all of which is put together in a package and sent to different buyers for bids. The policyholder can then choose the highest bid, and the payment is made in a lump sum. After you find out the value of the policy, you do not have to sell, you can choose to keep the policy and there should be no penalties for doing this. Any type of insurance policy can be considered for purchase including, individual, company, group, term, universal, survivorship or whole life.

Money earned from the selling of a policy can affect other aspects of your financial situation, so it is a good idea to talk with your financial advisor, or a lawyer before making the final decision. If you are in need of a large sum of cash now and selling your policy is not a good option, there are others, such as cashing in on the cash value of the policy, using the policy as loan collateral, check the fine-print if the policyholder has a terminal illness some policies will pay out before the policyholder dies and the money can be used for medical expenses.

Chris Simons is a prolific freelance writer. You are welcomed to visit http://life-insurance.cyberinformer.com, for more information on Life Insurance.

Article Source: http://EzineArticles.com/?expert=Chris_Simons

Life Settlement: Receive the Highest Payment

2006-05-16T15:34:00.000-07:00

allows senior to cash in their life insurance, but in a new way. Instead of cashing in their policy with the original life insurance company, they can work with a life settlement broker to cash in their policy with a financial institution that will pay more than their insurance company’s surrender value.

Seniors nationwide are quickly learning that surrendering their life insurance policy to their insurance company will not always reward them with the highest payment. Many insurance companies offer a low cash value and some policies don’t have cash value at all. Life Settlement brokers and companies have the ability to do a brief analysis to determine if the settlement will be greater than the cash value. Life Settlements also do not require any obligation, costs, medical exams, or hassles. Seniors can find out the true value of their policy through a Life Settlement and do not have commit to selling the policy.

The life settlement broker will take a basic application and then find out the value of the policy, if the life settlement amount is not what the senior expected or is too low, the senior does not have to move forward. There is no risk involved for the senior. Another key benefit for seniors and financial professionals utilizing a life settlement broker is the financial resources. A broker will use a handful of financial institutions and investors to find the highest payment for the policyholder. Brokers will also use the power of negotiations to the net policyholder a higher payment.

A life settlement can be a wonderful financial planning tool. It is however important to take the correct steps to receiving the highest settlement payout. The process can be completed quickly once the initial analysis has been completed on the policy and the policyholder.

Insurance agents, accountants, and financial professionals can also work with a life settlement broker to assist their clients with the process. A financial professional not offering a settlement option to a policy holder who is going to lapse or surrender their policy is not following their fiduciary duties.

Grant Shellhammer is located in sunny Orlando, FL. He is a licensed insurance agent and affliate Life Settlement Broker with Life Settlement Pro. Grant works with senior citizens and financial professionals nationwide to receive the highest available offers for their life insurance policies.

Contact details:
grant@lifesettlementpro.com
1.888.973.8377
http://www.lifesettlementpro.com

life insurance settlement- Viatical settlement

2006-05-16T15:31:00.000-07:00

Life Insurance Settlements allow a life insurance policy owner to sell an existing policy to a financial institution in exchange for an immediate lump sum cash settlement. The amount paid for the policy is a discounted percentage of the policy's net death benefit and represents the present day value of the policy. This purchase price is determined by considering the insured's estimated mortality (life expectancy) and the associated cost of premiums to keep the policy in force for that timeframe.

There are 2 types of life insurance settlement transactions:

Life Settlements create immediate liquidity from a non-performing asset, allowing policy owners to cash out of unwanted, unaffordable or obsolete life insurance policies insuring a senior over age 65.

Viatical Settlements enable someone facing a terminal illness to utilize the present day value of their life insurance policy to ease the financial burdens that can be caused by the high costs of medical care.

Most people dont know about life insurance settlements. If you would like to know more about selling your life insurance policy, please visit www.efinancial.net, or call 1-800-648-9504 and ask for a brokerage agent.

Life Insurance Settlements from Efinancial

2006-05-16T15:02:00.000-07:00

Dont Let your Life Insurance policy Lapse. You have options.

Before you let your life insurance policy lapse, or stop making payments, Call Efinancial and discuss a life insurance settlement. It is a lucrative option if you no longer need coverage because your children have gotten older, or change in job/financial status, etc.

A Life Insurance Settlement is essentially taking your current inforce life insurance policy and selling it off to the highest bidder. Companies will actually pay you a cash settlement for the policy and take it off your hands. They would be the new beneficiary and owner of the policy. You get paid a lump sum, and have the ability to purchase a new cheaper policy that better fits your changing needs. Let Efinancial find the best price for your policy. We work with a number of settlement companies due to the high volume of life insurance premium that we write.

You might be thinking....."Someone wants to give me a large sum of money for something I no longer want? and I can buy a new more affordable life insurance policy all in 1 spot?"

With Help from Efinancial, this is true.

The most likely candidates for a life insurance settlement are people in their 50s and 60s or older with a whole life policy, or Term policy with quite a few years left. All older age/ high risk policies are considered. Based on the risk, and chance of death, and the death benefit, the payout could be very large.

Most people dont know about life insurance settlements. If you would like to know more about selling your life insurance policy, please visit www.efinancial.net, or call 1-800-648-9504 and ask for a brokerage agent.