| Seniors Find Life Settlements Attractive During Uncertain Times |
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| Written by Kelly Ramirez |
| Tuesday, 20 April 2010 19:14 |
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Senior Citizens are looking to life settlements during this uncertain economy. Life settlements are becoming increasingly popular for seniors looking for sources of cash. While largely unknown, life settlements can provide an immediate lump sum for unwanted life insurance policies.
Senior Citizens are looking to life settlements during this uncertain economy. Life settlements are becoming increasingly popular for seniors looking for sources of cash. While largely unknown, life settlements can provide an immediate lump sum for unwanted life insurance policies. When life insurance is purchased the intent is to gain some kind of financial security if someone dies. Although, if the policy is no longer needed most believe that they have few options for the life insurance policy. Traditionally those options were to turn the policy into the insurance company and get the minimal cash surrender value. Alternatively, the policy holder could stop paying the premiums and allow the policy to lapse. With the advent of the life settlement market, policy holders now have a 3rd option. A policy holder can sell their life insurance policy in a life settlement for an immediate lump sum payment. The buyers, which are usually banks, hedge funds and other financial institutions, often pay sellers as much as 200%-500% more than the cash surrender value. The buyers take over the premium payments and the policy seller has no further obligation. Life insurance is an asset, just like stocks, bonds and real estate. As such, life insurance owners have the right to sell it. The right to sell one's life insurance has been upheld by the Supreme Court since the 1800's. The first step in selling a life insurance policy is to contact a life settlement broker. During an initial consultation, they can provide free estimates of your policy's life settlement value. Once an application is submitted, life settlement brokers will solicit buyers for your policy. Then a policy holder can choose the best offer and receive their payment. DISCLAIMER: This article is provided as information only and is not to be taken as financial advice. Want to find out more about a life settlement, then visit Kelly Ramirez's site on how to choose the best life settlement broker for your needs. |