The importance of life settlements

As a senior above the age of 70 years of age, in most cases, large policies are no longer needed, and thus what are known as life settlements are normally arranged for between a financial planner (such as an attorney, accountant, insurance advisor etc.) and the policy holder so that one can cash their policy by transferring it to the third party for a sum of money that is greater than its cash value but lesser than it face value.

Since these policies have been paid for many years, obviously the sum of money involved are not small ones, and therefore are diverted towards estate planning as the client has indeed reached the ‘sunset’ of his or her life. Thus, this kind of a financial transaction is known as a senior life settlement.

Now because the life insurance industry has been around for almost a hundred years, senior life settlements insurance has also become a prominent part of the industry as well, which is based on getting senior citizens the best amount for their life insurance policy instead of surrendering it back to the insurance company.

Among the several things that one can do with a lot of cash, for those above 70, the most important task is estate planning as well as getting coverage on other types of insurance that is more suited to their needs. With them being able to do this, one can leave behind a little something for their loved in the form of money or property in the form of a will or trust once they pass away.