What are Bonded Life Settements, Senior Life Settlements and Senior Life Insurance Settlements?
First you should know that a life insurance policy is an asset that can be sold – just like real estate or a car. A Life Settlement (sometimes called a Senior Life Insurance Settlement) is simply the sale of a life insurance policy by a senior citizen in return for a lump sum of cash. It’s usually a “win-win” situation. The seller of the life insurance policy gets cash to use however they want from an unneeded or unwanted life insurance policy and with a “bonded” life settlement there is a predetermined rate of return for the buyer. It’s a perfectly safe, high quality investment – often offering high returns. Bonded Life Settlements are insurance policies that have been underwritten to the standards of a bonding company, who, for a bonding premium, is willing to provide a performance bond warranting that should the policy not mature by a specified date, the bonding company will buy-out the purchasers’ interests in the policy at face value. The return on investment is typically lower on
