Not sure what a life settlement is? A life settlement is a life insurance policy settlement, or in plain English, a sale of your life insurance policy to “settle” the value of the policy and close it out.
A “life settlement” may be appropriate in certain circumstances, and we’ll cover some of those here on this site, and answer any questions you may have about selling your life insurance policy.
What is a life settlement?
A life settlement is the settlement of a life insurance policy. The transaction essentially closes out the insurance policy, in essence “buying back” the risk that the insurance company took in the first place. A life insurance policy (we’re talking about a whole-life policy, not a term life policy, of course), can have some residual investment value in the form of face value, dividend income (present and future), etc. All of these factors play into whether pursuing a life settlement is right for your situation.
When should I consider a life settlement
You may want to consider a life settlement if the policy value is significant and you have financial needs that might warrant “selling back” your life insurance policy to receive a lump sum payment.
How to get the best life insurance policy settlement possible
Usually it is a straightforward calculation. Life settlement specialists can help you determine the appropriate value of your policy.