What is a Life Settlement????

Uncommon Knowledge
If you havent heard of Life Settlements before, you're not alone. For most people, this kind of uncommon knowledge is reminiscent of the early introduction of franchising, mutual funds, condominium ownership and reverse mortgages. Today these business and investment structures are a part of everyday life.

 

A Simple Definiton
A Life Settlement is the sale of a current life insurance policy to a third party in a secondary market. As a financial transaction, a policy owner with an unneeded or unwanted life insurance policy sells their policy at fair market value to a third party for more than the cash surrender value offered by their life insurance company. The purchaser then becomes the new beneficiary of the policy at maturity. In the case of Senior Life Settlements, the original policy owner is typically 78 to 82 years old.

 

Filling a Need
Before the advent of a secondary market for Life Settlements,people only had a couple of options avaliable when it came to to a life insurance policy that was no longer necessary like cash in the policy for its cash surrender value provided it was the kind of coverage that allowed for this or
allow the policy to lapse so that the cash value, if any, would continue to pay the premium on the policy until the point that the cash value itself ws exhausted. But now, thanks to the emergence of an accepted secondary market for Life Settlements, many seniors have preferred option available to them.

 

A Better Solution
In order to sustain a viable secondary market for Life Settlements, there must be active buyers and sellers. Until recently, institutional investors and wealthy individuals were the primary source of investment capital available to purchase policies and pay premiums to maturity. Now thanks to a proven and accepted investment structure, individual accredited investors can participate in this market and enjoy a worry-free investment with superior protection of capital and significant yield potential.

 

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Why Invest in Life Settlements????

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According to the Economist, after savings accounts and government bonds, life insurance may be the most respecatable of investments. It is for the this reason that life insurance has historically represented a cornerstone in securing most people's financial affairs.

 

Life Settlements represent a new asset class for most investors offering many distinct and compelling advantages. Now, accredited investors can finally realize the same benefits that institutional investors and a wealthy few have known for years.