MARKET OVERVIEW
Life & Viatical Settlements Defined:
Life Settlement - is the sale of a life insurance policy to a third-party for a value in excess of the cash surrender value, but less than the death benefit.
“Viatical” Settlement - is the term used for a life settlement for an insured person who is terminally or chronically ill with less than a 30-month life expectancy.
Why The Life Settlements Industry Exists
A Different But Desirable Solution:
Solving the Immediate Cash Needs of the Insured
Most people know that whole life insurance policies serve two purposes:
- To provide financial security for their heirs
- To be a long-term financial vehicle to compound personal wealth
But… what most people don’t know, is that…
Life Insurance is personal property and can be sold by the owner — just like any other asset.
The Life Settlements Solution:
Provides policyholders with an easy & convenient means of liquidating an existing policy, when they decide it is no longer needed.
The fair market value given to the policyholder upon purchase, is often at much more generous valuations than the cash surrender value offered by the issuing insurance company.
Life Settlements Can Provide a Meaningful Economic Benefit.
Typical reasons to liquidate a life insurance policy (in the form of a life settlement) before passing away, include:
