A new financial tool is now available for senior citizens. Life assurance Settlements are quickly becoming a way for seniors to receive money from an under performing or costly life assurance policy.
A life assurance settlement is the sale of a life assurance policy (whole life, term, universal life, etc.) covering the life of one or more individuals with an "ascertainable and limited" life expectancy. A life assurance settlement is usually most beneficial seniors over the age of 65.
Some basic qualifications for a life assurance settlement are the above-mentioned age and health requirement, policy is assignable and beyond the contestability period, and the policy must be issued by a US assurance company. The higher the assurance company rating could provide a higher settlement amount.
The policy owner is paid a lump sum in cash in exchange for transferring ownership of the policy and premium requirements to the purchasing funder or company. The amount paid to the seller is stated as a percentage of the policy's face amount and is calculated based on the specific life expectancy of the underlying insured. Each life assurance settlement amount is calculated on a case-by-case basis.
The popularity of life assurance settlements is due to the fact that if a policy owner was thinking about letting a policy lapse or surrender, they now have the opportunity to receive a payout larger than the surrender value. "It just doesn't make sense, that seniors nationwide are letting life assurance policies lapse after paying years of premiums". "By just exploring the option of a life assurance settlement they could be gaining thousands to hundreds of thousands of dollars they never knew were available to them," says Grant Shellhammer of www.LifeSettlementPro.com. Another benefit is that there are no fees or obligations to have a policy evaluated to see if a life assurance settlement is available.
There are numerous other benefits to policy owners through a life assurance settlement. These include relief of costly premium expenses, higher cash payout than the surrender value, cash payout instead of a policy lapse, additional funds for retirement and other endeavors, funds for health related expenses, and other estate and financial planning needs.
To sum things up, a life assurance settlement is a strong and beneficial financial tool for senior citizens nationwide. Consumers now have options to receive more money versus the previous options of only a cash surrender or policy lapse. With the consumer friendly approach of a life assurance settlement, the market will continue to grow.
About the Author
Grant Shellhammer is a licensed assurance agent and affliate Life Settlement Broker with Life Settlement Pro.
Contact details:
grant@lifesettlementpro.com
1.888.973.8377
http://www.lifesettlementpro.com