Life settlements often entail the surrendering of your insurance policy to a third party for some fee or other arrangements. The process involves the transfer of the plan and its benefits from the policyholder to the buying third party. Many senior citizens that go out of work often fill life settlement contracts to meet their financial obligations.
Selling your policy may be a beneficial idea if you can no longer sustain the payment of its monthly premiums. You may also decide to sell your policy if you don’t need it or if you think that it has outlived its usefulness.
The life insurance settlement business is lucrative for brokers, insurance providers, and institutional investors that buy the policies. There is considerable competition in the market, and some life settlement companies use hard sales tactics that may land you a poor deal.