What is a Life Settlement?

It refers to the sale of an existing life insurance policy by the policy owner in exchange for cash. The policy is sold for a lump-sum to a large institutional fund for more than its cash value and the Buyer becomes the new owner of the policy. The Buyer pays for the premiums from then on and eventually receives the death benefit.

Who need a life settlement?

A Life Settlement may be especially appealing to seniors who no longer have dependents or have a need for cash. Life insurance policy holders are now able to sell their policies for 10-60% of the current coverage amount in a Life Settlement. By selling their life insurance policies, individuals are able to use the money however way they wish. For seniors, life settlement is the Hidden Benefit.

Why choose a life settlement?

Before, when you didn’t want to keep paying for your life insurance policy, you could either let the policy lapse or sell it back for the “Cash Surrender Value” to your insurance company. However, both cases would allow the insurance company to profit tremendously. But now you have life settlement. You can sell your life insurance policies when you have: a “Life event”, such as the death of a spouse or dependent, or divorce; a change in financial circumstances, such as a loss of income requiring the liquidation of one or more capital assets or the availability of cheaper insurance elsewhere. Oftentimes a life insurance policy may lose its predisposed value once people reach their retirement age, pay off their mortgage, or pay their children’s college tuition.

Here at Sky Vision…

We take the worry out of your concerns. Even if you don’t know anyone who has done this before, or you aren’t sure if this pertains to you or your family, or even you don’t know these people, we are here to help. Please contact us for independent financial advice of Life Settlement.