Life settlement policy
Aug0
Insurance firms benefit when the life expectancy increases and morbidity rate decreases. Life insurance policies held by those in their healthy senior years are sitting on a lot of untapped value. Life insurance policies held by seniors can be sold as life settlement policies to a third party in order unlock the cash value of the policy. Once the policy has been purchased, premium payments have to be done by the buyer that in turns becomes the beneficiary of the policy. Life settlement policy is similar to viatical settlement policy that was launched for the terminally ill AIDS patients in early 90’s. The difference between the two is that the life settlement policy holder should not be ill or suffer from any terminal disease. Viatical settlement policy works in scenarios where the life expectancy of the insured is less then two years.