A life insurance settlement is the sale of an existing life contract to a life settlement broker. The source of the original policy for the life insurance settlement could be a business contract like a buy-sell, key man or deferred compensation policy. A life settlement can also be done on a trust policy or an individually owned contract that is no longer needed or affordable.
People buy insurance for reasons that frequently change. Historically, when a policy is no longer needed, the owner simply lets it lapse, takes the remaining cash value or lets the policy run as long as it can with the available cash value.
A life insurance settlement is an alternative to just letting a policy go and can be far more profitable. Before you let your policy lapse, check out your alternatives at LIVEpdq.