Live Settlement - A resource for Life Settlement and Life Insurance Settlements

Life Insurance Settlement

Thanks for visiting LiveSettlement.com, the Life Settlement Industry is geared towards benefiting senior life insurance policy owners who would like to sell the rights to their policy for a lump sum. Senior sell the policy when they are Alive so why isn't this transaction called a Live Settlement? Maybe over time more and more people will begin to use both versions of the transaction.

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

Life Settlements

Life Settlements are the sale of an in-force life insurance policy for the calculated present value of its future net death benefit. The policy seller receives a lump sum cash payment in exchange for transferring all ownership and beneficial interest in the policy to the purchaser. The policy insured(s) must be age 65 or greater (in most cases), carrier must be B rated or better, and premiums usually need to be less than 5%. The transaction transfers expensive premium payments from the seller to the buyer and provides current cash to the seller for more suitable financial planning options. The seller is no longer responsible for the premiums and the payout can be used for whatever the seller may desire. Make sure you review Life Settlement Tax about taxable events.

The U.S. Census Bureau estimates that there will be 50 million people age 65 and over by 2010, representing almost 15% of the U.S. population. Given the significant proportion of that population which will continue to own life insurance, industry experts estimate that life settlement sales could reach $20 to $50 billion per year within the next 10 years.