Senior Life Insurance Settlement

Senior Life insurance Settlement : Settling a life insurance policy including Senior Life Insurance

A Life Insurance Settlement occurs when the insurance policy holder sells his existing policy to a settlement company or provider in exchange for a lump sum payment. The payment amount to the policyholder is a discounted value of the policy's net death benefit or the present Face Value. Briefly, a insurance policy settlement helps create instant liquidity allowing the policyholder to produce cash out of an unwanted, unneeded, or obsolete insurance policy within the regulations of the policy. Life Insurance Settlements have indeed revolutionized the Insurance Industry with life insurance policies having a net current day value. It offers an option to reclaiming life insurance policies which soon become unwanted or might become obsolete later in the life of the insured.

Earlier, if a senior citizen wanted to discard a life insurance policy that had become old or obsolete, the only option was to surrender, terminate or cancel the policy. Settlements on life insurance policies enables qualified policyholders to liquidate their policy for a price higher than its cash surrender value. Senior are now given an opportunity to benefit from a financial opportunity based on an otherwise obsolete asset. Life Insurance Settlements have become popular financial products and have a good secondary insurance market. Customers are thus in an advantageous position to surrender their life insurance policies at prices well above their cash value.

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