Life Settlement
A life settlement is the sale of a life insurance policy to a third party for less than the policy's full death benefit. The policy owner receives an immediate payment, and the third party, or life settlement provider, becomes the new policy owner. The new owner pays any future premiums and receives the death benefit when the insured dies.
A life settlement is the sale of a life insurance policy to a third party called a life settlement provider. The owner of the life insurance policy sells the policy to the life settlement provider and receives an immediate payment in return.
Some things to consider if you're considering selling your life insurance policy include:
Understanding your policy
Understanding the details of any life settlement offer you receive
Understanding how a life settlement broker is compensated