What is a life settlement?

Insurance is not something that one considers a luxury these days as it successfully covers a wide range of human needs such as medical, dental, life, home and vehicle insurance among several others that have been designed to suit a business or personal situation that one might encounter.

For those who have taken life insurance policies and are now in the last stage of their lives (60 years and above), a life settlement can be a useful way of being able to cash in on this policy if it is not performing on the expectations of the holder, the holder cannot afford to pay the premiums or if the holder no longer needs or wants the policy any more.

It’s interesting to note that over 50% of policies, that are eligible to benefit from senior life settlements insurance, have a market value that exceeds the cash value as offered by the insurance carrier with which the senior citizen holds a life insurance policy.

Since the legalization of the right to transfer life policies, not only has the option of going in for a senior life settlement proved beneficial for life insurance policy holders but for their future plans as well in terms of leaving their loved ones and family with some financial benefits that can help them improve the quality of their lives.

Since the market for life settlements is slowly picking up, it bodes well for both people who want to buy the policy and for those who want to sell it to consider this option, as both parties stand to gain more from the financial point of view.