A life settlement is a process of selling an existing life insurance policy for a cash settlement.
Since life insurance policies are considered private property, they can be extremely valuable assets.
The policy’s face value and premiums, as well as the insured’s age, sex, and health status, are the main factors that determine its potential value in the life settlement market.
The amount received for the sale of policy is generally greater than its cash surrender value but less than the face value. Once a policy is sold, the seller receives a lump-sum cash settlement, with the buyer assuming responsibility for all future premium payments, as well as becoming both the new owner and beneficiary of the policy.
A life settlement may be a better option than letting your policy lapse or surrendering it back to the insurance company.
If you’ve ever asked yourself “should I sell my insurance policy?” you’re not alone.
Here are a few reasons why selling your universal life insurance policy makes sense.
If you are an insured over the age of 72, your life insurance policy may qualify for a life settlement!*
At Prosperity Life Settlements, we help life insurance policy owners discover the hidden value that may be locked away in their policies. Our life settlement professionals will help you determine whether or not you qualify for a life insurance settlement. Get in touch with our viatical settlement brokers today.
A life settlement transaction is when the seller (the policy owner) transfers ownership and beneficiary rights of a life insurance policy to a buyer, a licensed life settlement provider.
Life settlements are generally for individuals aged 70 or older. However, if you are younger than 70, you may still qualify, depending on your policy and health status.
Settlement payouts will vary from case to case, primarily depending on the insured’s age, sex, and current health status. But rest assured: Prosperity Life Settlements works for YOU, and will work to get you the highest possible settlement for your policy.
Universal Life, Whole Life, Term, Convertible Term, Joint, and Second-to-Die life insurance policies, issued by a US-based insurance carrier, and with a face value of at least $100,000 will normally qualify for a life settlement, depending on the insured’s age, sex, and health status. To be eligible, life insurance policies must be at least 2 years old.
No. Once your policy is sold you will not be responsible for any future premium payments.
Yes, however, we strongly advise against this as your insurance carrier will likely only give you a fraction of the amount of money you could receive from a life settlement.
While theoretically, you could sell it on your own, we highly advise against this. Life Settlements are complex legal and financial transactions. Professional life settlement brokerage assistance is absolutely necessary for complying with regulatory requirements, and the fiduciary responsibility we have to our clients maximizes your settlement. Let us do the work for you!
In most cases, yes. We advise you to consult with your CPA and/or tax professional for more information as we are unable to provide any tax advice on this matter.
There are no restrictions! You can spend your settlement money any way you’d like.
Yes! A 1911 U.S. Supreme Court decision (Grigsby v. Russell) deemed life insurance policies as private property. You can sell your policy just as you can sell your car, house, or any other asset. Life settlements are regulated by state insurance departments in most states.
Yes, in some cases you can maintain a portion of your policy’s death benefit while still receiving cash.