Life Insurance Settlements

Unneeded or underperforming insurance policy holdings? Ever thought or heard of a financial services valuation tool and strategy called life insurance settlements? Well, if not, the capital markets certainly have heard and taken notice. Life Insurance Settlement companies purchase unwanted or un-needed life insurance policies from individuals and ultimately collect the death benefits. These payments are passed on to third-party institutional investors who are looking for returns that are not correlated with
existing portfolios. A key component to this growth expectation is that business is conducted in a responsible manner. Poor sales practices by settlement firms could hamper growth and spark a new wave of litigation. At present, there is roughly $13 billion of total in force settlement business. While small compared to the $9 trillion of individual life business on the industry’s books, the settlement market has grown about eight times faster than non-traditional life insurance. This growth rate differential will continue and could expand over the next few decades, which will draw more attention to the settlement business and senior life settlement in particular.

Here is a description of the dynamics at work and a little background detail about process:
 A life insurance settlement is a transaction in which policyholders sell the rights to the death benefits associated with their insurance policies to third party settlement companies. In other words, this process in effect creates a secondary market for life insurance products – like life insurance settlements. The typical market for these products includes individuals over the age of 65 with life expectancies of 4-10 years.
 A settlement firm, representing third-party investors, or better yet, an institutional funder, will provide a cash payment to the policyholder that exceeds the cash surrender value embedded in the policy. From that point on, the original policyholder will have no further involvement or association with the policy.
 The life settlement firm will continue to make premium payments on the policy to the life insurer, until a death benefit is claimed.
 The death benefit will be collected by the settlement company and passed on to third party investors, who are likely interested in returns that are not highly correlated with their other assets. (Source: Corporate reports and Bernstein Estimates)

A life settlement, to summarize, is basically the sale of a life insurance policy at a price, higher than the cash surrender value. Many seniors are realizing the extraordinary benefits of unlocking the dormant asset value of life insurance, allowing them to better plan for their future through what is essentially newly-found money. Life insurance settlements are increasingly offering seniors viable options for their life insurance policies, and, as we are now seeing, more financial options can be rewarding indeed.

Life Settlement Process

Life Settlement Process

The Life Settlement Process is not at all complicated.

The following is a typical transaction.

1-The policy owner or their representative request a Life Settlement application from Peachtree Life Settlements by calling , filling out our online quote request form, or by email.

2-The application is completed along with the requested authorizations. The application includes authorizations to collect medical records and up to date information from the applicants insurance carrier about the policy to be sold.

3-Peachtree Life Settlements collects needed information including attending physician statements, insurance policy copies and illustrations, etc. to formulate a viable offer.

4-The offer is given to the policy owner or their representative for acceptence.

5-Once the offer is accepted, contracts and insurance policy change of ownership documents are forwarded to the policy owner or their representative for review and signatures.

6-The signed documents are returned to Peachtree. The documents are then forwarded to the insurance company to record new ownership.

7-Once changes of ownership and beneficiary have been recorded and verified, settlement funds are wire transferred into the account designated by the original policy owner.


At this point you have 15 days to change your mind and cancel the Life Settlement transaction.


The process usally takes anywhere from 4 to 6 weeks to complete, factoring in receipt of documents.

Each situation is unique. Some cases may be able to fund quickly, while others may take a little more time. Rest assured that you will be working with a professional that represents an Institutional Funder, and that all your questions will be answered promptly.

Visit us at Life Settlements, or call us with any questions you may have.

Life Settlement Benefits

A life settlement or senior settlement as it is sometimes called, can be beneficial in a number of ways.

First of all, a senior may want to stop paying high life insurance premiums, since their original reason for purchasing a policy may have changed. We all have situations where we keep paying for things out of habit, and not because we really need them. Mortgage insurance is a good example. How many people keep paying even when their lender doesn't require it anymore. Habits do die hard. Let's say that a senior purchased a life policy 15 or 20 years before, so that their children would be able to go to college in the event of their demise. Well, the child has graduated from college, and has a great career. Why keep paying for something that is unnecessary?

Did you know that the value of the life settlement in the open market is more than the cash surrender value? Imagine receiving a check for 100's of thousands of dollars or even millions, and how these "found" funds that might change your lifestyle today, instead of tomorrow!

We will cover the mechanics at a later time, as well as more other more detailed analysis. For now, explore the possibilities of life settlements with an institutional funder here.

Life Settlement Cases-Sell Life Insurance Policy for More

Sell Your Life Settlement to the Largest Institutional Funder. Review the Sale of Actual Life Settlements.

What is a life settlement?

Description of Life Settlement and benefits of selling Life Settlements for your clients. Peachtree life settlements is an institutional funder purchasing life settlements and life insurance settlements. Sell your life insurance and senior life settlements to the largest institutional funder in the industry.