In 1911, a sick patient was having trouble paying his hospital bills. He was terminally ill and had but a few more months to live. Fortunately, he had a life insurance policy which he wished to cash in for spare liquidity. The patient asked his doctor, who was taking care of him at the time, if the doctor could purchase his life insurance policy before death, and receive the benefits after he had died.
How Life Insurance Settlements Works
Finding the Cash Value of Life Insurance
This was the background for the 1911 case of Grigsby vs. Russell, which it made it all the way up to the United States Supreme Court. After the trial, long after the sick patient’s passing, the Supreme Court established that life insurance policies possess all the ordinary characteristics of property. Therefore, Life Insurance Settlement Brokers could calculate the Value of Life Insurance Policies and offer policyholders the option of cashing out of life insurance policies.
How Do I Qualify for a Life Settlement?
Life Settlements Are Cash For Life Insurance Policies
Make Use Of Your No Longer Wanted Life Insurance Policy
Many people do not know the benefits that a life settlement organization like Life Insurance Settlements can offer. In fact, most seniors don’t know that they have this option but there and there are many reasons for selling your life insurance policy. Viatical settlements can be a valuable source of liquidity for people who would otherwise surrender their policies or allow them to lapse.
When you surrender your policy to your insurance company you will only get back your policy’s cash surrender value: pennies on the dollar. Similarly, when you allow your life insurance policy to lapse you are telling your life insurance company that you cannot pay your monthly dues anymore. The policy freezes (you are not covered) and your survivors will not be able to receive the death benefits after your passing.
The beauty of a life settlement is that you receive a lump sum cash payment GREATER than the surrender value your insurance company can give you. The amount you receive depends on three factors: your age, health and the terms/conditions of your policy.
A life settlement can make sense for you if you no longer want or need your current policy, or if you can no longer afford the expense of paying insurance premiums.
Start Your Life Settlement Qualification Process
Life settlements require qualifications that vary in every state. Work with one of our experienced life settlement brokers to find the cash value of your life policy and help you withdraw money from your life insurance.