What is a Senior Life Settlement Policy?
Senior Life Settlements (“SLS”) are U.S. life insurance policies of individuals, normally aged 65 years or over with a life expectancy of less than 15 years, that have been sold by the individual. The SLS market allows insurance policy owners to sell a policy for an amount much higher than the amount offered (known as the cash surrender value) by insurance companies. The emergence of the SLS market has become an important factor in the estate planning process for seniors. Before, if a senior owned a policy that was no longer wanted, needed or affordable, there was no option but to lapse, cancel or surrender the policy back to the insurance company for the cash surrender value.
Related Questions
- I originally purchased a survivorship life policy with a 10-year payment schedule that now has been increased to 14 years with no end in sight! What can I do?
- As my policy includes life and critical illness cover, does that mean it could pay out twice, once of I get a critical illness and then again if I die?
- What will happen to my insurance coverage if the Iowa Life & Health Insurance Guaranty Association becomes liable for my policy?
