life agreement

The life settlement industry was propelled to popularity by the viatical settlement industry. History has shown us that the first to adopt the life agreement were those who suffered from AIDS and who only had a couple of years to live. They sold their insurance policies assuming they would receive immediate cash in exchange for the person who bought them. When medical advances found a way to combat the AIDS virus, these senior citizens lost out because they had to pay premiums for a long time. Some fraudulent companies have also resorted to marketing this concept in order to make a quick buck by giving seniors hope of greater investment.

Life settlement occurs when a policyholder voluntarily sells the policy for a price to the buyer, who then becomes the sole owner of the policy. The new buyer has to pay the premiums from the date of purchase. It is common for people over the age of sixty-five to opt for life, especially if there has been a negative change in their health situation. The immediate cash option is attractive because the seller can finance your medical bills and take care of other responsibilities.

If you are planning a life settlement, it is best to get advice from experts who know the market. Accountants, charitable trust officers, financial planners, and attorneys are just a few of the people you can contact. Since they know the regulations and paperwork involved, they will be able to make a more informed decision. The idea behind the life settlement is to get a high offer on your policy. This could take a lot of work if you are working alone. Sometimes a broker will organize to find the right seller who can offer fair market value. The benefit of hiring a broker is that he can get offers from different sellers. Therefore, he can choose the most favorable offer among the offers. Sometimes it is necessary to provide your medical history to secure a good offer.

Once the buyer accepts the life settlement offer, he returns any confidential documents he might have taken for verification. Change of ownership forms are then exchanged and the final deal is closed.

Some licensed life settlement agents are Action Advisors Inc, Advanced Settlements Inc, Allsettled Group Inc, Berkshire Settlements Inc, Brown & Brown Associates PC, Darrell L Tate, Don Karns Insurance Agency Inc, Fairmarket Life Settlements Corp, etc. To find an agent in your area there are several listings on the Internet. Brokers will also provide you with a free consultation so you can discuss your financial situation freely and confidentially.

To summarize, a life settlement is made when a person wants to sell their policy for cash. The reasons behind this could be high premiums, medical issues, job changes, bankruptcy, etc. It’s wise to be knowledgeable about the process and, more importantly, to find a broker or financial advisor who can make your life settlement worthwhile.