What is a Life Settlement?
A Life Settlement is the outright sale of a life insurance policy to a third party for a value greater than the cash surrender value, but less than the death benefit.
In recent years, life settlements have become an important solution for a growing number of individuals who thought they were stuck with a life insurance policy they no longer need. Many people do not know that a life insurance policy is their personal property and can be sold.
The seller receives cash
The buyer pays all future premium payments
The buyer receives the policy's benefit upon the death of insured
who qualifies for a life settlement?
Age - 65 years or older (Younger individuals may qualify depending on certain medical conditions)
Death Benefit (Face Amount of Policy) - $100,000+
Health Status - Life expectancies up to 240 months
Date of Issue - The policy must be in force for at least 24 months before it qualifies for a life settlement
Type of Policies- Individual, foundation, trust, coorporate, non-profit organization, or business
Carrier - USA-based life insurance carriers only
HOW MUCH IS MY POLICY WORTH?
Life Capital Group prices policies using an actuarial formula. There are over twenty factors considered when generating an offer on any given policy. The top three factors include: the face amount (death benefit), the amount of premiums due each year on the policy, and the life expectancy of the insured. Every policy and insured present their own unique scenarios, this requires us to review an application, medical questionnaire, and an in-force illustration to estimate the value of a policy.
