Life insurance settlements — selling your life insurance policy to a third-party investor–seems to be a good deal in certain conditions. You should consider the sale of your insurance policy for several reasons:

• You no longer need or want your life insurance policy
• You are unable to afford the premium payments
• There have been changes in your life and financial circumstances

Generally people sell their life insurance policy when they are terminally ill or old, and need money to pay for their living costs. There are two main types of life insurance settlement:

• The first one is senior life settlements, which is considered for people who are above the age of 65.
• The second type, viatical settlement, is considered for people who are terminally ill and their life expectancy is three to five years.

Third-party investors who are interested in buying life insurance policies  contact life settlement brokers, who find eligible policies for them. Your insurance policy will be considered by life settlement brokers, if it corresponds to certain criteria:

• $50,000 minimum face amount. If it is lower, the investor may not benefit from it, or even lose money.
• Low cash surrender value. After buying your insurance, the investor will be the one to pay the cash surrender value. So the lower it is, the more he benefits.
• The older the policy holder is, the more are the investors interested in his life insurance policy. So, your age is another important factor.

If you decide to sell your life insurance policy, you will be payed more than the cash surrender value, but less than the whole amount of death benefits. After you sell your insurance policy, the investor who bought it becomes its official holder. That means your heirs will not benefit from your life insurance after your death.

Related posts:

1. The Way Life Settlement Works
2. A Growing Role For Life Insurance Settlement Services
3. More Opportunities With Life Settlement