WHAT IS A LIFE SETTLEMENT?

A life settlement is a financial transaction in which the owner of a life insurance policy sells his or her policy to a third party investor. The policy owner receives a lump sum cash payment from the investor that is less than the death benefit of the policy but greater than the cash surrender value (the amount the owner would receive from the issuing insurance company if the owner elected to terminate the policy). In exchange for the lump sum paid to the owner, the investor becomes the sole owner and beneficiary of the policy. The investor then assumes responsibility for all future premium payments and is entitled to the full death benefit upon the death of the insured. A life settlement is an attractive opportunity for both the investor (the buyer) and the owner (the seller).

SELLER: A valuable option for an owner who is considering surrendering or replacing a life insurance policy. In many cases the fair market value of the policy exceeds the cash surrender value by 30%.

BUYER: A unique investment that is not correlated to real estate, equities, bonds, commodities, and other markets. The market value of a life insurance contract is not typically affected by interest rates, the price of oil, political events or the gyrations in the other economic markets. Not being subject to the volatility of these markets makes a life settlement investments a singular choice for a truly diversified portfolio where the additions of life settlements reduces portfolio risk and enhances overall returns.

Please contact us at lsinfo@mynewasset.com for more information regarding life settlements.