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What is Life Insurance Settlement

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					What is Life Insurance Settlement? A financial transaction wherein there is a sale of an
unneeded or an unwanted policy by its owner to a third party at a price higher than the
cash surrender value. Once the life settlement procedure is made it is the duty of the new
owner for the payment of subsequent insurance premium and it would be the purchaser of
the life insurance policy who would receive all the benefits of the insurance policy on its
maturity. Life insurance settlements have contributed to a significant development for the
owners of the life insurance policy because the policy owners can have a price which is
higher than the cash surrender value or the amount of money which is offered by the
insurance company to the policy owners at the time when they would like to sell the
unwanted policy. In the market scenario, life settlement act as an effective option of
investment for the people above 65 years of age possessing policies of high net worth.
Research studies have reported that 20% of the policies settled under the life settlement
process are provided a market price which is higher than the cash value of the insurance
policies. From the above explanation an overview of what is life insurance settlement can
be understood and now the rest of the article is going to explain some of the terms which
are important to be understood in understanding the life insurance settlement. Life
Insurance or Cash Surrender Value: Cash surrender value is the amount the insurance
company would be willing to pay to the owner of an insurance policy incase the owner of
the policy has decided that he does not require the particular insurance policy anymore.
In such a case the owner of the policy would get a cash surrender value which is much
lower than the face value of the policy and even lower than the options like life insurance
settlement. Viatical Settlements: This is another option which is available to the owners
of the insurance policy owners like the life insurance settlement. A viatical settlement is a
process wherein the owner of the policy can sell his life insurance policy before its
maturity. Viatical settlements are particularly meant for the insurance policy holders who
possess a catastrophic or a life threatening disease or illness. Thus when the insurance
policy is sold to the company, they would become the beneficiary of the policy on its
maturity. Senior life settlement: Senior settlement is a process wherein the senior citizens
can sell their unwanted life insurance policies to the companies before the maturity of
their insurance policies. The insurance policies are sold at a higher price than in the other
case if it is sold to the insurance company. Thus Life settlement insurance companies
have contributed to the creation of a secondary market for the owners of the policies who
cannot wait for the maturity of the policy and it also forbids the owners of the policy to
acquire a price higher than the cash surrender value. Cathrine is a SEO Copywriter of
Life Settlement. She has written many articles on Premium finance service, Life
Settlement Broker, Life insurance settlements, ...etc. For more information visit:
Premium Finance or email us at lumlaatseg@live.com

				
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posted:8/12/2013
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Marijan Stefanovic Marijan Stefanovic Digital Imagery http://proart-13.blogspot.com/
About Publisher, Web, PC, Marketing, Blogging, Social Networks & More * Please be open minded while reviewing this data, further research is suggested. This documents and articles are in "as is" form, I can not take responsibility for financial or physical harm occurred while using or misuse of information posted, thanks for understanding, Marijan