Information on Life Settlements

Life settlements are life insurance policies that are put up for sale to third parties because they are nearly expired and the owner does not wish to continue it or the owner simply feels that they have no need for such a policy anymore. Instead of just waiting for it to expire, they sell it to other people who might want it through life settlement brokers or life settlement companies. Life settlement companies make it easier for policy owners to sell their policies when they no longer need it and they save them the time to look for possible candidates to sell the policy to.

A life settlement can cost more than its actual price but definitely not more than its face value, so to speak. Excluding the policy owner, there are usually 3 entities to consider when it comes to policy settlements, the providers, the brokers and the investors. The Providers are the ones who intend to buy the policy. They often times go to brokers and see if the brokers can find them a policy that suits their needs. The Brokers are the ones that bring together a policy holder and a provider. They are in charge of putting a policy up for bidding or for direct sale, meaning they look for specific people who they think might want to buy the policy. They are of course compensated for their efforts. The Investors provide financing for the life settlement transactions; they can choose to buy the insurance policy themselves should they choose to.