Life Settlement Glossary

H

heir

Any individual or entity that inherits a portion of a deceased person's estate.

human life value

The net present value of an individuals future earning power based on income, expenses, remaining working years, and an appropriate discount rate.

hybrid premium finance

A type of life insurance premium financing that accepts the projected future life settlement value policy is the primary collateral for loaning future premiums. The borrower also posts a modest amount of collateral beyond the insurance policy and may or may not be personally responsible for repaying part or all of the loan.