There are many unanswered questions when it comes to life insurance settlements. Your insurance company will most likely pass the buck, which means it is up to you to do the research and find out about this viable exit strategy from your unwanted life insurance plan. To help you along your journey, the Life Insurance Settlement Association (LISA) offers the following answers to some of the most frequently asked questions about life settlements.
- Is a life settlement investment right for me? According to life settlement brokers Advanced Settlements, if you are 70 years of age or over, have a life expectancy of less than 12 years, and own a life insurance policy with a face value of $250,000 or more, a life settlement transaction may be an option for you.
- Does it cost me money? Yes. According to LISA, the costs associated with the sale of a policy are included in the purchase offer. A fee is typically paid to the life settlement broker who negotiates and handles a life settlement contact.
- How long will it take for me to receive my money? Typically, a life settlements investment takes four to six months to complete.
- What happens to my life insurance policy after I enter into a life settlement contact? The entire policy is transferred to the new owner, including ownership rights and obligations under the policy. A new beneficiary will receive the proceeds upon the death of the insured.