A Life insurance settlement is often referred to as a Senior Settlement. A life insurance settlement occurs when a policyholder (who is not terminally ill) decides to sell their policy to an investor for a part of the face value. The investor takes over the premium payments and gets the death benefit when the policyholder dies. This is a good option for older people who bought policies years ago when they were needed, but now the premium is so high it is not worth paying for, or the benefit is so excessive that it is not needed.

Although life insurance settlements are not a well-known procedure they are a good way for policyholders to get rid of unwanted policies, and often the policyholder gets more money from it than simply surrendering the policy would get them. Often the amount earned through life insurance settlement is twenty to twenty five percent more than the surrender value of the policy. More people are becoming informed about life insurance settlements. This can be seen in the rise of life insurance settlement deals with different brokers. One company expects over five billion dollars in life insurance settlement deals next year.

There are a few requirements that companies are looking for when they buy a life insurance policy. One is that most require that the policyholder be at least 65 years old, and be in generally good health. Your policy will also sell for more if interest rates are low, if your premium is low, and if the policy is past the