A life settlement is when an individual sells their life insurance policy to a third party, in exchange for a lump sum payment. The policyholder receives the payment immediately, while the investor pays any future premiums and receives the death benefit when the insured dies. The upfront payment is less than the full amount of the death benefit but typically more than the policyholder would receive from the insurance company if they surrendered the policy.

More often than not, a policyholder will reach a point where their life insurance policy no longer benefits them. This happens for a variety of reasons whether they no longer want to make monthly payments, or just simply don’t have a need for the policy. Only when this occurs will the insured seek a life settlement in which we offer an upfront cash amount and take over the monthly premiums. Often times the insured will receive over 5x the cash amount from a life settlement rather than if they surrendered their policy to the insurance provider.