Easily Understand Your Life Insurance Settlement Options
If you’re signing up for life insurance coverage, one of the last but most crucial decisions you’ll need to make as a policyholder is deciding how you want your beneficiary to receive the funds from your death benefit. These are commonly referred to as your “life settlement options.” This decision must be made regardless of whether you have a whole life insurance policy or some other form of life insurance.
How Does a Life Settlement Transaction Work?
If you’re like many permanent life insurance policyholders today, you’ve probably noticed that your policy is hardly earning anything right now. This is because of the low-interest-rate environment, and it shows no sign of changing anytime soon. That’s why it might make sense for you to sell your life insurance policy to a qualified buyer […]
Life Settlement FAQ: Your Questions Answered
What is a life settlement? In a nutshell, a life insurance settlement transaction is when a life settlement company offers to buy a life insurance policy from a policy owner for a given sum. If the policyowner agrees to the price, then the life settlement company will become the new owner and beneficiary of the [...] Life Settlement Regulations Map by State
What is one of the most important things to know about life settlements and viatical settlements? Both life settlements and viatical settlements are regulated in the U.S. at the state level. That means that either your state’s insurance department or financial services department has laws, rules, and regulations on the books that govern a life […]
Life Settlement Taxation: What You Need to Know
Are you considering selling your life insurance policy in a life settlement transaction (also sometimes referred to as a life insurance settlement)? If so, it is important as the policyholder to understand the tax consequences of such a policy sale. As with any important financial planning decision that involves taxation, you should consult with your […]
Difference Between Viatical Settlement and Life Settlement
The terms “life settlement” and “viatical settlement” are sometimes used interchangeably. However, it’s important to understand that while these types of settlements are quite similar, there are also some key differences between them. If you’re of retirement age and have a life insurance policy in your name, knowing the difference between a life settlement and […]
Universal Life Insurance Policy Premiums
What is Universal Life Insurance? Universal Life insurance policies are popular life insurance products due to the flexibility, including flexible premiums, they offer the policyholder when compared to other life insurance products. People who choose universal life insurance (over term life insurance or whole life insurance) are typically looking for permanent coverage but also looking […]
What is a Chronic Illness Rider in Life Insurance?
In order for the life insurance companies to remain competitive, they have had to invent new types of life policy products for consumers that can do things that traditional life insurance policies could not. The biggest drawback of traditional life insurance was that in order to collect the death benefit, the insured (who was also […]
What is an Accelerated Death Benefit?
Traditional life insurance policies allow insureds to financially provide for their beneficiaries if something happens to them and also accomplish various other estate planning functions, such as making charitable gifts or reducing estate taxes. However, one thing always had to happen before the death benefit could be paid out: the insured had to die. The […]
How to Borrow Against Your Life Insurance
If you need to get your hands on a lump sum of cash quickly, then you should consider taking out a loan from your permanent life insurance policy. This can often be the fastest way that you can take out a loan, as well as the cheapest. Cash value loans in permanent policies have been […]