A life insurance settlement is the sale of a life insurance policy to a third party for an amount greater than the cash surrender value. Typically, the sale involves an insured age 65 or older with a policy that is no longer needed, wanted, or affordable to an investment company that provides the owner of the policy with a lump sum cash settlement. This secondary market for life insurance contracts provides an alternative to accepting the issuing insurance company's surrender value for the policy.

The combination of insured’s health condition and age is an important factor in qualification for a life settlement. Purchasers may have different criteria, however most commonly life settlement purchasers require a minimum insured age of 65 years or older. However, younger insureds may qualify if diagnosed with a serious health condition.

All policy types, including term, whole life, adjustable life and universal life may qualify. Some purchasers will also consider group life, if convertible. Commonly, policies with death benefits of $100,000 or more may qualify.

Whether you choose to work with a broker or sell directly to a provider, there are several steps you will go through to complete the sale of your unwanted or unneeded life insurance policy. The steps in the life settlement process are: Applications/Qualification: The process begins with the owner and insured granting permission to gather information to evaluate the policy. For the owner, this means a request for information from your life insurance company concerning the premiums and benefits provided by your policy. For the insured, giving permission to request medical records for underwriting. At this time the owner and insured may receive additional information and disclosures. Information Gathering: Once the owner and insured have granted permission, information will be gathered from the insurance company and from the insured’s physicians. Once the medical records are received, they are reviewed by specialty actuaries and underwriters. Appraisal/Valuation: All of the information about the policy and the insured underwriting are combined and evaluated to determine the current market value of the policy. Each policy and insured combination are unique, and therefore each policy must be considered individually. Offers to Purchase: Keep in mind that any offer to purchase consists of both the amount of money the buyer is willing to pay and any terms they may propose to complete the transaction. Terms include timing, and other conditions that may need to be confirmed before the sale is completed.

· Create Capital for Charitable Giving · Supplement Income/Retirement · Fund Investments · Provide for Educational Funds or Current Gifts · Create Capital for Business Opportunities · Pay for Medical Services · Lower Debt · Purchase Annuities · Save for Long-Term Care · ANYTHING - the Proceeds Are Unrestricted