Sometimes senior citizens no longer need their policies which they had
taken in their youth. They may not be able to pay the premiums anymore,
or they may need the cash for some other purpose. Some years ago, the
only options to get rid of unwanted policies were to cash them in at
their surrender value, or, worse still, to allow them to lapse. Both
these methods caused a serious loss to the policyholder.
Senior Life Settlement Policies
Senior citizens above the age of 65 years can sell their unwanted policies
to other parties and get a lump sum settlement in cash. Such a Life
Settlement is done when the person requires money for some urgent purpose,
to invest in business or to simply fulfill some lifelong desire.
A Guide to Senior Settlement Brokerages
Life Settlement Brokers make the entire process of Senior Life Settlement
easier. Insurance is a highly secretive market, where the current prices
of policies are not easily available to the policy holders. Brokers
get this inside information, as most brokers are closely affiliated
with insurance companies. Brokers also know the procedures along with
all their intricacies, and can speed up the process. One more important
advantage of having a broker settle a senior policy is that they can
attract more bids and hence give a better choice to a buyer.
Senior Life Settlements: An Introduction
A Senior Life Settlement means the sale of an insurance policy to a third
party at a value less than the face value of the policy. The buyer
of the policy is liable to pay all future premiums on the policy, while
the original holder of the policy gets a lump sum in cash. This lump
sum is an amount that exceeds the cash value of the policy accrued
till that date.
Licensed Senior Settlement Company
A Senior Settlement Company is an establishment that buys unwanted policies
from senior citizens and sells them off to other interested parties.
The company becomes liable for all further premiums on the policy and
its benefits, once the policy is bought by it from the original policyholder.
The responsibilities of Senior Settlement Companies include buying
the policy from the senior policyholder, customizing it according to
present-day requirements, introducing it to interested parties and
inviting bids, selling it to the highest bidder and compensating the
original policyholder a lump sum amount in cash. These companies also
maintain the current funds of the policyholder in an escrow account
till such time as the policy is sold to someone else.
Senior Life Settlements Industry: An Overview
Senior Life Settlements have provided senior citizens a method to realize
the financial value of their insurance policy assets before their maturities.
Earlier, a large number of policies would either lapse or be surrendered
by senior citizens who were unable to keep paying the premiums. But
now, these policies can be settled with a buyer.
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