Life Settlement

Life Settlements Investments

What is A Life Settlement?

Life settlements refer to the sale of a life insurance policy, for more than the policy’s cash value, to an investor who will keep the policy open until the person on whose life the policy is on dies.

life settlement provides a lump sum payment to the policyholder when, in many circumstances, the policy would have expired anyway. The policyholder does not to put up any cash or make any kind of investment. After receiving their lump sum life insurance settlement, the policyholder will have no further financial obligations.   

Life insurance settlements are often desirable to policyholders who may require, a lump sum cash payment and whose policy was in danger of expiring anyway. 

This is often because the actual cash value of the policy is not enough to cover the annual insurance costs, or in the case of term life insurance policies, where the owner cannot keep up the necessary premium payments.

Life settlements should not be confused with viatical settlements. Although fundamentally similar, viatical settlements are typically made when the policyholder has been diagnosed as being terminally ill and has less than two years to live.

Nearly all types of life insurance policy will qualify for life settlements, and in some situations even group life policies can be settled. 

It is very rare for the policyholder to be asked to take a medical examination before the settlement. Usually the policy’s value can be calculated based on the person’s age and general state of health, although the prospective buyer will normally ask for medical release forms.

Life Settlement Contract Samples

A life settlement contract can be very detailed document. Life settlements are usually high dollar transactions, so the contracts need to be complex to make sure both parties are protected.

During the closing of a life settlement, funds are placed in an escrow account. All details and requirements of the contract need to be met and reviewed before funds can be disbursed and changes made to the life insurance policy.


Life Settlement Application Samples

A life settlement application is the first document most people will complete when starting the life settlement process. Of course some might have utilized a worksheet or overview sheet to see if they initially qualify. Go ahead and complete the full application because each case is looked at individually.

It is important to have the correct information when preparing your life settlement app. you will need to provide your personal information, information about the life insurance policy, and medical information. 

Having the correct contact information for your insurance company and doctors can speed up and assist the company handling your case with retrieving the needed documentation.

Another important key to the application is the hippa. this allows the company to request medical records directly from your doctors, and illustrations directly from the insurance carrier.

Most brokers and funders will not be able to work any cases without an executed hippa.if you are working with a couple brokers or funding companies, you may be required to fill out additional applications.

Structured Settlement Brokers

Structured settlement brokers are a special type of insurance agent who helps decide on a settlement as a case approaches. Brokers can run many financial projections based on a term of years, payments over your life, over your joint life with your spouse, etc. 

You can even call for no payments for a period of time, with payments starting thereafter as a way to fund your retirement. Thus, structured settlements are very flexible. Provided that you consider these issues before signing a settlement agreement, you can structure as much or as little as you want and take the rest in cash.

A qualified, structured settlement broker can help anyone during the structured settlement process. For individuals who have won large judgments as a result of negligence or malpractice, it can sometimes be difficult to know just how to handle all that money, which is why selecting a structured settlement broker is needed. While these types of brokers are not a dime a dozen, selecting the right broker takes some research.

Brokers who have been in the business for a long time have track records, not to mention reputations. So it is important that one asks for credentials or references and some past cases to review.

Additionally, a good structured settlement buyer will be listed in good standing with the better business bureau (bbb) so that is always a great resource as well.

Life Insurance Settlement Options

Life insurance policy is something everyone should take in their life time. Life insurance policies help people to take care of their future. 

Life insurance policy also helps a person to take care of his family after his death. Life insurance is such that it can take care of a person when he is alive and also after his death.

When a person is in need of money and decides to sell his life insurance policy to a third party, then it is called life settlement. Life settlement is the financial transaction between the policy holder and another third party. 

In life settlement, the policy holder gets more money by this transaction than the present market value of the policy. 

When the buyer who is a third party opts for the life settlement, he becomes the holder of the policy. He pays a lump some amount to the policy owner to buy the policy. The third party becomes the beneficiary for the policy after it matures and will be paying all the premiums after the purchase of the policy.

Life Settlement Is A Good Option

For anyone who is in the age group of sixty five or above. Most of the people who opt for life settlements are not very familiar with the options available.

Such people should take the advice of a financial consultant who deals with life settlements. Most of the policies which are in the life settlement market have a value which is more than the market value. 

A person whose policy is active for a minimum of two years is eligible for a life settlement. Some times the policy holder might opt to go in for the life settlement through a broker. A broker is a person who acts as an intermediary between the policy holder and the buyer. The broker will get an amount as a commission for this transaction.

It is always better if the policy holder takes the advice of a financial consultant before taking a life settlement. When the third party makes the offer, the holder should discuss with the advisor and then take a decision about the life settlement. 

If the amount of the life settlement suits the holder’s expectations then he can agree for the settlement. When the paper work is over then the holder gets his life settlement amount. 

Companies Who Deal With Life Settlements

There are big companies who deal with life settlements. They are experts in analysis and valuation of insurance policies and offer money according to the clients’ needs. Companies who deal with life settlements should have a license to do this business.

Life settlement helps old people who are retired to lead a comfortable life. Old people will have health problems for which life settlement can be a good option. 

Life settlement also helps the senior citizens to solve all their financial problems. Life settlement is a boon for old people who want to have a comfortable life without the help of others. by opting for life settlements they can avoid troubling others and live a happy life. 

What is A Wrongful Death Settlement?


A wrongful death settlement is the restitution offered to the beneficiaries of a person who was killed as a result of another person’s negligence or actions. Traditionally, it was difficult in the us to claim wrongful death settlements, since it was deemed that when a person died, their claim was terminated.

However, most states nowadays have adopted wrongful death statutes, which allow reparation to be given to the victim’s family for medical expenses, loss of income and the grief associated with losing a loved one.

Wrongful Death Settlement Negotiations

A wrongful death settlement can be attributed to such instances including car accidents, medical malpractice, a work related accident as well as many more. Negligence can be charged if the guilty party failed to prevent injury or death from occurring.

However, the statutes of limitation restrict the time during which the settlement case can be filed. Since each state is state has different laws governing these statutes, you must always consult with an experienced attorney in your jurisdiction.

A wrongful death settlement will be negotiated between the plaintiffs and

 the defendant’s insurance company. If an amicable agreement cannot be

 settled then a person has the right to seek a court judgment. 

In order for a court to award damages, the burden of proof rests on the

 plaintiff to prove the accused actions resulted in the fatality of the diseased.

This proof will greatly influence the amount awarded. When successful, a structured settlement will be arranged by the insurance company rather that one lump sum cash settlement. however, it is possible these days to sell structured settlement policies to a broker in return for a one off lump sum payment.

What Is A Senior Life Settlement?

A senior life settlement is where an elderly life insurance policy holder sells their policy to an investor for a lump cash settlement. In some situations this could be a viable alternative to allowing the policy to lapse, perhaps because of their increasing medical costs. 

Senior life settlements will typically yield the policy holder 50-80% of the policy’s face value. In return, the investor will continue to pay the premiums and will receive the full lump sum on the policy holder’s death.

A senior life settlement should not be confused with a viatical settlement, which is where the policy holder has been diagnosed as being terminally ill. It is essential if you are thinking of this type of insurance settlement, speak with a competent, impartial financial advisor. 

Whilst, in some situations the cash settlement of a life insurance policy may be the best alternative to allowing the policy to lapse, this may not always be the case.

If you are considering a seniors settlement, please bear in mind that the regulation of the industry varies from state to state. For example, illinois at the time of writing does not require agents to be licensed and therefore protecting seniors from potential fraudulent cash settlements needs to be addressed. 

There are also concerns about whether the investors purchasing these types of insurance settlement should be regulated, such as the doctor or carers of the policy holder, since this could ultimately result in a conflict of interest.

What Is a Personal Injury Settlement?


A personal injury settlement allows victims hurt from negligence or harmful acts by another person to recover damages against the guilty party. The amount recovered in a personal injury settlement can vary depending on the nature and extent of the injur.

The amount of economic damages such as lost wages or medical bills incurred, or the amount of time that the injury is expected to last. In the u.s, it has been estimated that 16% of children hospitalized as a result of an unintentional injury will suffer some form of permanent disability.

Personal injury settlements may be a result of a vehicle accident, medical malpractice, or a workplace accident. If the guilty party is insured then the plaintiff will need to notify the insurance company. In most circumstances they will issue a cheque for the damages up to the limit of the individual policy. 

If the guilty party is uninsured, however, then the process of recovering damages becomes much harder. In this situation it may be necessary to seek an attorney who specializes in collecting judgments.

Personal Injury Settlement Attorney’s Fee

A personal injury settlement attorney’s fee is usually negotiated before the case begins. In california the fee is typically 40% if the case is litigated through trial or arbitration. 

The fee will be based on the retainer agreement between the plaintiff and the lawyer handling the case. Some retainer agreements stipulate that the fees are calculated on the gross settlement before medical bills are paid whereas some are paid out on the net amount.

If your case wins then a structured settlement will be negotiated, where by the plaintiff will receive regular monthly payments, rather than a one off lump sum. However, it is also possible to sell structured settlement payments to an annuity buyer and receive a cash lump sum.