February 10, 2008

Selling your Life Insurance Policy

Are you having difficulty maintaining your life insurance premiums, or plan to lapse your policy coverage? Maybe you simply do want or need coverage. Perhaps you are considering buying a smaller life insurance policy.There is a growing market whereby large financial institutions will purchase your life insurance contract. This financial strategy is called a "life settlement" or sometimes referred to as a "senior settlement". Perhaps you are a business owner that had purchased "key man" life insurance for an executive that is either leaving your firm or retiring. This plan can also apply to you.

A Life Settlement is the sale of an existing life insurance policy to an investor in a secondary market transaction. There are two parties to every life settlement transaction (sometimes also called a "Senior Settlement"): a policy seller (who no longer wants or needs the policy) and a policy buyer (typically a life settlement provider buying the policy on behalf of an institutional investor). The seller is the owner of the policy and may be an individual, trust or corporate entity. The insured under the policy is normally a senior citizen, 65 years of age or older with a life expectancy of 3 to 15 years.

Policies that are purchased include; Term Insurance, Universal Life, Whole Life, Joint Policies and Variable Contracts. QuoteBroker has experience in this area to maximize your proceeds. email:

The price of the policy is derived in large part from the life expectancy of the insured, and the amount paid for the policy is less than the death benefit, but in nearly every case much more than the policy's cash surrender value. Sellers receive an immediate cash payment in consideration of the policy sale. The buyer ultimately collects the full death benefit when the policy matures upon the death of the insured. After closing of the life settlement transaction, the policy buyer assumes responsibility for all premium payments from the date of the life settlement to the maturity of the policy.

There are other ways to take cash out of a permanent life insurance policy that you may want to consider if this valuable protection is still needed.