a contractual arrangement in which a funder buys a life insurance policy for a
a financial instrument that allows a consumer to receive the maximum current cash value of their life insurance policy
a financial planning alternative that provides the opportunity to take full advantage of the value of your life insurance policy as an asset
a lump sum settlement paid to the owner of a life insurance policy by one of many funding sources in exchange for the ownership of the policy
an alternative option to surrendering a policy or letting it lapse by not paying premiums
a sale of a life insurance policy from a senior citizen
payment made in exchange for beneficiary rights to a person's life insurance policy; typically an older person (70 years or older) with a life expectancy of less than 12 years; the insured is not terminally ill.
Payment made in exchange for beneficiary rights to a life insurance policy of an insured person who is over 65 years of age and not terminally ill.
Lump sum cash settlement paid to an insurance policyholder in exchange for contract ownership rights.
The sale, assignment, transfer, devise or bequest of the death benefit or any portion of an insurance policy or certificate of insurance for compensation less that the expected death benefit of the insurance policy or certificate. A life settlement also includes a loan or other lending transaction secured primarily by an individual or group life insurance policy or death benefit other than a loan by a life insurance company pursuant to the terms of the life insurance contract, or a loan secured by the cash value of a policy. It also includes an agreement to transfer ownership or change the beneficiary designation at a later date regardless of the date that compensation is paid to the seller.
A life settlement is a transaction in which an existing life insurance policy that is no longer needed or is in danger of lapsing is offered for sale to institutional investors in the secondary market. Individuals over the age of 70 with moderate health concerns who own such insurance might find that their policy is worth as much as 25 percent of the current death benefit. The financial enterprises that purchase life settlements will maintain such policies until the insured's death.
The sale of an existing life insurance policy to a third party for an agreed upon compensation.
A life settlement is a financial transaction in which a policyowner possessing an unneeded or unwanted life insurance policy sells the policy to a third party for more than the cash value offered by the life insurance company. The seller receives immediate cash for the policy from the purchasing entity which becomes the new beneficiary of the policy at maturation and is responsible for all premium payments from the time of the purchase until the seller passes away.
