Life Settlements. Investing In Death.

Most people are familiar with the availability of buy-outs on life insurance for those with a terminal illness, but the elderly in good health may also be able to sell their life insurance policy as well. For a policy holder, selling their life insurance policy may be a much better deal than to cash it in with their insurance company. Depending on their age and medical condition, their life insurance policy could very well be worth a substantial sum. The buyers (investors) in early payoffs (also called life settlements), are earning solid returns and dont have to worry about the ups and downs of the stock market.

Category:

Howto & Style

Tags:

• viatical settlement
• life settlement
• senior settlement

[winsman01]

The industry is further spreading the risk of a person living longer than expected by packaging several lives together in one investment. It's called a fractionalized Life Settlement. A great way to understand a Life Settlement is to compare it to a Reverse Mortgage. It is exactly the same concept. Some seniors need cash now for prescriptions or whatever, more than they need a paid off house. In the same way some need cash now more than they need to leave money to beneficiaries.