Life insurance settlement options can be a useful planning tool so, what are they? If you are selling (settling) your policy life insurance settlement options are generally, a lump sum, lump sum plus a paid up life insurance policy, annuitization of your lump sum. These options may be more varied depending upon your personal situation and the settlement advisor or settlement company you are dealing with.
Life insurance settlement options may also be offered by your life insurance company. Some of the life insurance policies and life insurance companies available today have internal life settlement options that not only provide cash at death but, provide “living benefits” as well. A snapshot of life settlement options offered by these policies and companies shows, terminal illness benefits up to a percentage of face amount, critical and chronic illness benefits, again subject to policy limitations, and disability benefits as defined by the policy.
Several insurance companies have offered life settlement options to existing policy holders; this may be recent and not updated in your current policy.
If you are considering life insurance settlement options, please contact your insurance or settlement advisor to see what if any benefits are provided through your current policy or carrier. Your settlement advisor will normally know this before you ask. For more information please click on LIVEpdq.