Life Insurance Settlement

A Life Insurance Settlement is a way for people over age 65 to sell their life insurance policy for more than its cash value. They are also known as Viaticals or Senior Life Insurance Settlements.

Several types of life insurance policies are eligible for a Life Settlement including: Term, Universal, Whole Life, Joint/Survivor Life, and Group Life Insurance contracts.

The market to buy life insurance policies from current owners was created for those life insurance policy owners that no longer needed their policies. Or, found they were no longer affordable.

In 2002 $1.3 Trillion of Life Insurance protection was surrendered or lapsed coverage. The Wharton School of Business completed a study on life settlements evidencing that in 2002 Life Insurance Settlement Providers paid out $340 Million to purchase life insurance policies from their owners with cash surrender values of $94 million. That was a 262% increase for the owners of the policies.

It’s important to compare several offers when selling your current life insurance policy. Also, it’s a good idea to contact Institutional Funders considering they are aware of all compliance requirements, usually carry errors and omission insurance coverage, and can provide you with multiple offers.