A life settlement is a financial transaction in which a policy owner possessing an unwanted or unnecessary life insurance policy sells the policy to a third party for more than the cash surrender value (cash value offered by the life insurance company). The purchaser becomes the new beneficiary of the policy at maturation and is responsible for all following premium payments.

A life settlement allows you to convert your life insurance policy into cash. In a typical scenario, a bank or financial institution will purchase the policy, become the owner and beneficiary, and take over the premium payments. You are released from any obligations and are free to use your life settlement money for anything you like.

Many people find that as they reach retirement age, pay off their mortgage or see their children through college, their life insurance has served its primary purpose, and is no longer useful. At this point, the expensive premiums are being directed toward an investment that is under-performing. Freeing up the money and eliminating the premiums using a life settlement creates greater financial freedom and new options for you and your family. Learn more about life settlements.

Life settlements are an important development in that they have opened a secondary market for unwanted life insurance in which policy owners can access fair market value for their policies, rather than accepting the lower cash surrender value from the issuing life insurance company. The proceeds are given to the owner and used as they wish for retirement, healthcare, vacations, investments, travel.


For seniors who no longer have dependants a life settlement can provide the immediate solution for needed cash. This liquidation can be enjoyed by the policy owner for the rest of their life instead of never seeing the money. Its perfect for seniors who have no dependants and are in need of retirement income. Information for seniors is becoming more available online. The market for life settlements is growing as seniors find more life settlement information online.

The growth of Life Settlements is changing the way that financial professionals advise Senior clients. What was just a few years ago, a relatively unknown financial product, Life Settlements have quickly grown into what is now a multi-billion dollar industry. As the Life Settlements Industry continues to gain mainstream acceptance, many more senior market advisors are adding Life Settlements to their list of financial options. Life Settlements represent an enormous future source of commissions for those financial professionals that recognize the importance of this new senior financial planning tool. Delivering information to clients is an essential part of providing life settlement services.

Life settlement may be appropriate under a number of different scenarios. For example, if estate planning requirements change, insurance premiums become a financial burden, a mortgage is paid off, children become financially independent, or a business is sold. The common denominator is that the existing policy no longer fits the needs of the policyholder