What Is A Life Settlement at Life

What Is A Life Settlement. The buyer of the policy becomes the new beneficiary and takes over the monthly premiums. The payment amount is somewhere between the cash surrender value.

With a life settlement, you can sell your life insurance policy for an immediate cash payment. The total amount of cash received is more than the policy’s cash surrender value but less than the death benefit. When the transaction closes, the buyer assumes responsibility for the policy and its premiums.

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When the transaction closes, the buyer assumes responsibility for the policy and its premiums. The sale of your policy is called a life settlement, and has grown in popularity as policyholders become more informed about their options. A life settlement is a transaction in which an investor purchases a life insurance policy from an insured person upfront. The total amount of cash received is more than the policy’s cash surrender value but less than the death benefit.