Senior settlements refers to life insurance policies that are for sale or that have been sold in the secondary market that insure a person that is 70 years of age or above. This relates to a funder or company that purchases policies for an amount of money-upfront payable to the owner of the life insurance policy.
In the life settlement business the life expectancy report will become a very important concept or document to you that must be compiled and furnished to the funder. This report is based upon the insureds medical history and current criteria based in most instances on a current medical exam.
The actual policy costs, illustrated in a specific form will also be used by the funder to make offers to the owner/insured. Senior settlements does mean policies that are in force on the lives of the ” elder insured”; however, the method used to arrive at the net present value of the policy is the same regardless of age.
In some instances senior settlements become viatical settlements. The viatical settlement usually means a policy settlement where the life expectancy is less than 24 months. These types of settlements relate to listed terminal illnesses.
Research as to what you policy is worth is prudent regardless if your undecided as to sell or not to sell. I advise hiring an agent/advisor to help you receive valid offers that way you can be in a position to answer the question” to sell or not to sell.”
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