Description

A Life Settlement is the sale of an existing life insurance policy to a third party, such as Life Settlement Providers, which pays cash today for the rights to receive the benefit of that life insurance policy.

In the transaction, the ownership rights of the policy are transferred to the purchasing entity and the settlement provider becomes the owner and beneficiary of the policy. The settlement provider also becomes responsible for all premium payments once it assumes ownership of the policy.

The cash settlement belongs entirely to the client and he or she can use the money however they decide. It may be for an annuity, long-term care, estate planning, living expenses, a gift to family members, a charitable donation, or even a vacation. It’s their money and their choice.

Eligibility

Individuals who may be eligible must own a Universal, 2nd to Die, 1st to Die, Whole Life or Term Policy from a U.S. insurance company with an A.M. Best rating of B+ or higher with a face amount of at least $1 Million and include those who:

• Are at least 65 years old, regardless of health
• Policy must be beyond contestability and suicide period

Case Studies

83 Years of Age Male	Face Amount: Cash Value: Life Settlement:	$20,000,000 $0 $7,000,000
82 Years of Age Female	Face Amount: Cash Value: Life Settlement:	$5,000,000 $0 $2,365,000
67 Years of Age Male	Face Amount: Cash Value: Life Settlement:	$10,000,000 $0 $1,910,500