Senior settlement is a popular process whereby senior citizens can sell unwanted life insurance policies. There are a number of reasons why a person who holds a policy may wish to sell. The person may no longer be able to keep up with the payments on the policy, or he may want to free up some cash for other investments. The cash from the senior settlement can be used to finance the person's retirement or pay off some outstanding debts.
Previously, the only way people could cash in retirement insurance policies was to give them up at their surrender value. Another way was to allow the policy to lapse. Both these options meant that the policyholder would suffer a loss on the policy. Senior settlement allows the policy to be sold at a value higher than the surrender value at the time of sale.
A senior citizen can sell her policy to a third party, who will then become liable for all further payments and premiums on that policy. The senior citizen will receive cash for the policy. The process of senior settlement is becoming an increasingly popular way to free up cash. The cash from the senior settlement is a good way to pay for medical expenses or retirement care. It may also be put towards other policies that are a more viable financial option.
There are a few conditions to be considered in the senior settlement process. The policyholder must be at least 65 years old. He must also have a life expectancy of less than 15 years, and the policy must be worth at least 100,000 US dollars (USD). When entering into the senior settlement process, it is advisable to have a few interested buyers. This will gain the seller an advantage in receiving the best price for the policy.
There are many financial organizations that specialize in senior settlements and can advise you on the best way to go about a senior settlement. It is part of the process of companies that deal with the financial arrangements of terminally ill patients. As with all financial dealings, make sure you gain independent advice and can find a reputable organization. The best way to do this is usually through word of mouth from relatives or friends.
