Below is a general description of a life settlement (a.k.a. life insurance settlement) and how it works.
A life settlement is the sale of a life insurance policy covering a person who has a limited life expectancy -- generally 20 years or less.
In a life insurance settlement transaction, the policy owner is paid a lump sum in cash in exchange for transferring ownership of the policy to Legacy Benefits, LLC.
The amount paid in a life insurance settlement is based primarily on the life expectancy of the person insured, the face amount of the insurance policy and its premium requirements.
A life settlement is typically the more lucrative alternative to letting the life insurance policy lapse or surrendering it to the issuing insurance company.
Whenever policy owners are considering surrendering a life insurance policy or letting it lapse for any reason, they should explore the life settlement option with their financial advisors.
