A senior life settlement is when seniors, usually between the ages of 65 and 79, decide to sell their existing life insurance policy to another party through the assistance of a broker for less than its net death benefit total and more than its surrender value that they would get in cash. A senior could want to sell their existing insurance policy for a number of reasons:
When it comes to life policies, seniors frequently face the problem that because of their age they can no longer afford their life policy, so their policy becomes too expensive to keep and a financial burden. Selling the life policy to an investor who will collect the policy’s payout when the time comes to collect it can relieve this problem. If this sounds interesting to you, keep in mind that once you sell your life policy for a lump sum, this policy now belongs to an investor and no one in your family will receive any amount from the policy.
Here are some questions that a senior should ask themselves when they decide to sell their life insurance policy:
To sum everything up, this guide gives you a basic understanding on what a senior life settlement is, why you may want to sell yours, and some questions that you should ask yourself when selling your life insurance policy.