Life insurance settlements are the sale of life insurance polices by the owners of the policies, to third party buyers, in exchange for cash. The amount paid to those selling their policies is higher than they would have received by cashing their policies in, but less than would have gone to their beneficiaries, had they passed.
Life settlements became popular when AIDS was claiming many victims, and some policy holders decided that they would rather spend their life insurance money while they were alive. In fact, life settlements usually are not offered unless the insured person on the policy appears to not have many years left to live, or else the policy is not worth purchasing by the buyers.
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Life settlements became popular when AIDS was claiming many victims, and some policy holders decided that they would rather spend their life insurance money while they were alive. In fact, life settlements usually are not offered unless the insured person on the policy appears to not have many years left to live, or else the policy is not worth purchasing by the buyers.