What is a senior life settlement?
Ans. A senior, or life, settlement is the sale of an insurance policy on the life of an insured over age sixty-five (with health concerns that are not catastrophic or life-threatening) to a third party for a cash payment. The third party receives all rights to and proceeds from the policy and takes over premium payments. In return, the seller receives a cash payment.
A Senior Life Settlement, often referred to as a life insurance settlement or a viatical life settement, is the sale of an existing life insurance policy of a senior citizen for a lump sum of cash. It is less than the policy’s face amount but more than the cash surrender value. A life insurance policy is property, like a house, car, or stocks and bonds; it may be sold in accordance with applicable laws. According to Conning and Company, 2003: The National Association of Insurance Commissioners (NAIC) estimates that in 1996 nearly $1.5 trillion face amount of life insurance policies, expired, lapsed, or was cancelled by policyholders; each policy was a potential source of wealth had the owner sold it on the secondary market [through a senior life settlement]. Industry experts forecast the Senior Life Settlement market to be between $20 and $50 billion annually over the next decade. How can you benefit? Through a Senior Life Settlement transaction, a policy owner can realize value today
