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.
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