Financially.site – A life settlements is a financial transaction in which the owner of a life insurance policy sells their policy to a third party for a cash payment.
This transaction can offer a financial lifeline to policyholders who no longer need or can no longer afford their life insurance coverage.
In this comprehensive guide, we will explore the key aspects of life settlements, including their benefits, process, factors affecting payouts, and how to decide if a life settlement is right for you.
What is a Life Settlement?
A life settlement is the sale of an existing life insurance policy to a third party for a lump-sum cash payment.
The third party becomes the new owner and beneficiary of the policy, paying any future premiums and receiving the death benefit when the insured person passes away.
Life settlements are often considered by policyholders who no longer need their life insurance coverage or who want to access the policy’s value while they are still alive.
