Senior Life Settlements have provided senior citizens a method to realize the financial value of their insurance policy assets before their maturities. Earlier, a large number of policies would either lapse or be surrendered by senior citizens who were unable to keep paying the premiums. But now, these policies can be settled with a buyer.
The Senior Life Settlement industry grew out of the viatical settlement industry. Viatical settlement is given to terminally ill patients, such as AIDS patients, who have a life expectancy of less than two years. However, this period cannot be considered with finality as due to medicines, the life of even terminally ill patients can be stretched beyond two years. Hence, a separate industry, i.e. the Senior Life Settlement industry, grew out of the viatical settlement industry for people having life expectancies of more than two years. Senior Life Settlements are given for senior adults who have crossed the age of 65 years (though the age limit may be different in different states).
The Senior Life Settlement industry is responsible to the National Association of Insurance Commissioners. The NAIC released the Viatical Settlement Act in 2001, and the entire Senior Life Settlement industry functions under the guidelines given in this act.
Currently, the Senior Life Settlement industry is a multimillion-dollar industry. In a financial report, it was estimated that the industry paid $340 million annually to senior citizens as settlements. This amount is only for the 20% of the total number of senior policies that qualify for settlement according to NAIC norms. More and more senior citizens each year are trying to get their policies settled, and this is leading to a great increase in the market of policy settlement.
There are 175,000 life insurance companies in the US, out of which 34 companies handle senior life settlements. It is statistically projected that these providers will be buying $10-$15 billion dollars worth policies in the year 2005.
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Senior Life Settlements: An Introduction
10 August 2010 8:30 PM |
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A Senior Life Settlement means the sale of an insurance policy to a third party at a value less than the face value of the policy. The buyer of the policy is liable to pay all future premiums on the policy, while the original holder...
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Senior Settlements
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Sometimes senior citizens no longer need their policies which they had taken in their youth. They may not be able to pay the premiums anymore, or they may need the cash for some other purpose. Some years ago, the only options to get rid of...
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Senior Viatical Settlements
10 August 2010 8:30 PM |
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Senior settlements are different than viatical settlements. Viatical settlements involve the selling of the life insurance policy by a person who is terminally ill and whose life expectancy has been predicted to about two years or so. The policyholder may need cash either to ease...
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Senior Life Insurance Settlements
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A senior life insurance settlement is the financial option available in the hands of a senior citizen to sell his/her life insurance policy to others and availing the death benefits before the maturity period or the demise. In contrast, viatical life insurance settlements offer premature...
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Loan Against Senior Life Settlements
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Life settlement describes the sale of a life insurance policy to a third party buyer and receiving a lump sum amount in cash. When a policy is settled, the original owner is no longer responsible for paying the premiums and will not receive any amount...
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Senior Life Settlement Providers: A Guide
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There are several financial institutions that provide Senior Life Settlements. They purchase an existing policy from a senior policyholder and try to sell it to a buyer, who will be responsible for the policy premiums from that time forward. Such companies charge their fees as...
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Types Of Life Insurance Settlements
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A life insurance settlement is defined as the selling of an active life insurance policy for a lump sum amount to any other interested part. However, sellers need to ensure that, the value of the policy received after sale is more than, its cash surrender...
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Corporate Life Insurance Settlements
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Life insurance settlement is the purchase of the existing insurance policies from the policyholders at a fixed percentage of the total cash value of the policy. This can be taken advantage of by a senior citizen who thinks that his or her policy is no...
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A Guide to Senior Settlement Brokerages
10 August 2010 8:30 PM |
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Life Settlement Brokers make the entire process of Senior Life Settlement easier. Insurance is a highly secretive market, where the current prices of policies are not easily available to the policy holders. Brokers get this inside information, as most brokers are closely affiliated with insurance...
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Viatical Life Insurance Settlements
10 August 2010 8:30 PM |
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The physical and emotional demands of a terminal illness are traumatic enough – both for the person and for the near and dear ones. Financial strains only serve to compound the trauma. Viatical life insurance settlements, if handled carefully, can provide financial relief. The process...