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Life Settlement Funding - Life Settlement Funding Life settlement funding, additionally known as senior settlement or life time settlement, is a scheme that allows qualified life insurance policy owners to liquidate a life insurance policy for a particular amount much higher than the cash surrender value. If a senior person, over 65 years old, owns a policy that is absolutely no longer needed or affordable or there is absolutely no option but to lapse, then the life settlement funding companies help him in selling his Life Insurance Policy at a much higher price than what he will have received by surrendering the policy. Life settlement funding companies have created a secondary market for life insurance policies. The entity buying the policy becomes the new beneficiary pertaining to the policy including is responsible for all premium payments from the time pertaining to the purchase. Life settlement funding provides many additional benefits to the policy owners like relief of monthly premium expenses, additional funds to supplement retirement income, including funds to seek treatments not covered by health insurance. The seller might decide whether or not to work with a broker. Life settlement funding has not yet become a mainstream financial product but it has created competition for the life insurance companies, by giving the consumers a choice to sell their policies in a particular open market for a higher price, above the cash surrender value offered by insurance companies. The top providers in the life settlement funding companies hold the seller’s policy as a confidential portfolio asset, including do not make it available to outside investors. Although most states have laws including regulations in place covering viatical settlements, less than a half has laws regarding life settlement funding or senior settlement funding.
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