Business of Life Settlement

Life settlements are financial transactions where a holder of a life insurance policy sells it for an amount greater than its cash surrender value but for less than its net death benefit amount. They are often used as a way for individuals to dispose of valuable life insurance policies that they no longer need or can afford. Life settlements can provide additional financial resources to policyholders who otherwise would have to surrender their policy, or may be a less expensive alternative to having to continue premium payments. The business of life settlements involves the purchase and sale of these policies, which typically require an intermediary to bring buyers and sellers together.