Consumer - How It Works
A life settlement is the sale of an existing life insurance policy to a third party for a lump sum payment, also known as a senior settlement. A life settlement transaction provides the policy owner with liquidity and funds typically in excess of the policy’s cash surrender value.
Changes in people’s lives can easily alter, reduce or even eliminate their need for existing life insurance. What was once a sound and essential asset can often turn into an unneeded expense or even burdensome liability. Life settlements offer an alternative through the transfer of the ownership rights of a policy. Upon the closing of a life settlement transaction, the settlement provider or its financing entity becomes the owner and beneficiary of the policy and assumes responsibility for all future premium payments.
Life settlements have become a mainstream financial planning tool for individuals over 65 and/or their corporations or trusts. Peachtree is setting the standard for the life settlement industry and leading the way towards a greater understanding of this powerful financial planning tool.
