What is a Life Settlement? Are the policyholders disadvantaged?

A life settlement is the sale to a third party of an existing life insurance policy for more than its cash surrender value but less than its net death benefit. A life settlement normally refers to policies insuring older individuals with life expectancies greater than two years.

A “Viatical Settlement” is generally defined as a transaction involving a terminally or chronically ill insured (person who owns a life policy). A “Life Settlement” is defined as a transaction involving an insured who is not terminally or chronically ill, and usually has attained a minimum age of sixty-five (65).

There is often little or no surrender value for policies like these, and so, in the USA, many are now auctioned to licensed providers, either through specialist settlement brokers or by the policyholders directly. So policyholders wishing to "cash in" early can now market their policy(ies) to the highest bidder, adopting a quote system based upon a number of competing bids.

easy Life Settlements will consider purchasing both viatical and life settlements from suitably licenced settlement providers.