What is a Life Settlement?

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A life settlement is the sale of a life insurance policy to an investor for cash. The amount received is more than the policy’s cash surrender value, but less than the death benefit.

 

Why Consider a Life Settlement?

 

People often pursue life settlements when they need money to pay for long term care, pay off their mortgage, fund retirement, or other expenses.

 

In a life settlement transaction, once you accept the offer you no longer  have a premium obligation  and you receive cash for your unwanted Life Insurance Policy.

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Further, a Life Settlement offers favorable tax treatment.