What is a Life Settlement?

A life settlement is a financial transaction that converts your existing life insurance policy into cash that can be used for a myriad of reasons. Retirees and seniors are often unaware of this process and of the significant cash value their life insurance can provide.

As life circumstances change, life insurance policy needs change as well. The initial reasons for having the life insurance policy may no longer exist, so owning the policy becomes an unnecessary expense and burden. When this happens, it’s the right time to think about selling your policy so you can benefit from it instead of continuing to pay expensive premiums.

This is allowed under U.S. law, as the Supreme Court has ruled that a life insurance policy is private property. Like any financial decision, choosing to sell your insurance policy requires you to weigh all of your life insurance settlement options in order to understand when selling makes sense.