What is a Life Settlement?

A Life Settlement (sometimes called a “Senior Settlement”) is the sale of an existing life insurance policy for cash. The policy is sold to a large institutional fund for more than the cash value of the policy. This investment fund (“the Buyer”) gives you, the seller, a lump-sum check and becomes the new owner of the policy. The Buyer also pays all of the premiums going forward. Eventually, the death benefit on the policy is paid to the Buyer.

What were your or your client’s options before Life Settlements?

Several years ago, if you or your client did not want to continue paying for their life insurance policy, they had essentially two choices:

You or your client could let the policy lapse.
You or your client could sell it back to the insurance company that sold the policy initially for the “cash surrender value.”

In either case, one thing was certain - the insurance company profited handsomely.

To what types of insurance policies does this apply?

Life Settlements may apply to virtually all types of life insurance policies except for non-convertible term insurance.

Contact us today by phone at 888-75TOWER (758-6937) or by email at info@tcpartnersllc.com.