Life Settlement Overview

A "Life Settlement" is a lump sum settlement paid to the owner of a life insurance policy by one of many funding sources in exchange for the ownership of the policy. Never before have non-terminal policyholders been able to receive capital in excess of their policy's cash or surrender value to increase their wealth. A Life Settlement can usually provide anywhere from 2 to 5 times the cash surrender value of the policy. "With the life settlement option availble, there is no reason to surrender or lapse your life insurance policy." says Grant Shellhammer, of http://www.lifesettlementpro.com/.

Generally, anyone over age 70 who has $100,000 or more in life insurance coverage may qualify for a Life Settlement regardless of health condition. Other factors considered in the negotiations are the policy's cash surrender values and the cost of premiums. A basic principle to remember is that the older the age of the insured and/or the more health complications exist, the higher the settlement. However, each individual's situation is different from case to case.

The fundamentals of the Life Settlement transaction have technically been around since 1989 in the form of "viatical settlements". Individuals at any age can qualify for a viatical settlement if they have a chronic or terminal illness such as cancer or HIV. Viatical Settlements have always been contingent upon the health of the insured, whereas Life Settlements are contingent mainly upon the age of the insured. In most states a terminally ill senior applicant will need to use a licensed viatical broker and/or funder in order to abide by state rules and regulations and to retain the tax-exempt status of the settlement.

According to industry reports, Life Settlement proceeds are tax-free up to the cost basis (premiums paid since policy inception). They are taxed as ordinary income from basis to cash surrender value and proceeds above the cash surrender value are taxed as capital gains.

Once the Life Settlement change of ownership has been recorded with the insurance company and the policyholder has received their money, the Life Settlement funding source will continue to pay premiums throughout the life of the insured. All types of life insurance qualify including group, term, whole-life, universal, survivorship and key-man policies.

Grant Shellhammer is located in sunny Orlando, FL. He is a licensed insurance agent and affliate Life Settlement Broker with Life Settlement Pro. He works with senior citizens and financial professionals nationwide to receive the highest available offers for their life insurance policies.

Contact details:
grant@lifesettlementpro.com
1.888.973.8377
http://www.lifesettlementpro.com

---

A Free Term Life Insurance Quote Is Only Easy To Obtain

By searching online for life insurance, you can get a... Read More

Finding California High Risk Truck Insurance

California high risk truck insuranceIf your are in need of... Read More

Guide to Car Insurance

Here is a useful guide to car insurance. Buying car... Read More

Are Accidents More Likely To Occur Closer To Home?

If you are going to be involved in an accident,... Read More

Outside Pressures On The Typical Insurance Adjuster

Insurance adjusters are not without outside pressures they must deal... Read More

UK House Insurance - The Risk of Under-insurance

For many years in the UK, motor insurance has been... Read More

Long Term Care and Long Term Care Insurance

A person might need long term care (LTC) if he/she... Read More

Compare Car Insurance Companies Before You Commit

If you want to save money on your car insurance,... Read More

Car Insurance Online ? Benefits of Applying for Auto Insurance Online

Drivers are applying for auto insurance online not just for... Read More

Internet Insurance Leads

It is a fact that more and more people everyday... Read More

Homeowners Insurance Coverage

When deciding on the appropriate amount of homeowner's insurance coverage... Read More

Do You Pay Too Much For Your Car Insurance?

Do the premiums just seem to get higher and higher... Read More

Finding Fast Life Insurance

Since the widespread growth of internet usage and database building... Read More

Types of Auto Insurance Coverage Explained

A question you might ask yourself is: why must we... Read More

Saving on Auto Insurance: The Road to Reduction

The road to saving on auto insurance is something that... Read More

Insurance Credit Scoring: An Ethical Issue

The issue at hand is the use of a consumer's... Read More

Everybody Wants The Best Term Life Insurance Quote

The information you need about the best term life insurance... Read More

How To Save Money On Your Homeowners Insurance?

In order to save money on your homeowners insurance you... Read More

7 Sure-fire Ways of Reducing Your Home Insurance Premium

Home security improvement:All insurance companies will happily offer you a... Read More

The Life Insurance Policy and What You Need to Know Before You Buy

Are you looking to buy a life insurance policy? Well,... Read More

Avoiding The Potholes Of Car Insurance

Car Insurance is an issue that we all of face... Read More

What to Look for in Good Health Insurance

Health insurance is a kind of protection that provides payment... Read More

Consequences of Late Insurance Payments

Did you realize that it could cost you more than... Read More

Health and Dental Insurance Quotes - Applying Online

Since 2001, large health and dental insurance companies such as... Read More

Individual Health Insurance Plans - How To Find The Best Provider Online

Whether you are self-employed or a small business owner, finding... Read More

Insurance Glossary of Terms

Assured - Those insured under the terms of an insurance... Read More

The Many Benefits of Travel Protection Plans

Many people purchase insurance thinking I want full coverage and... Read More

Underinsurance Can Spell Disaster For Homeowners

Insurance is meant to give homeowners peace of mind, but... Read More

Health Insurance Online - Save Today

It is now possible to thoroughly research and buy health... Read More

Business Insurance ? And What You Need To Know

Getting your business up and running is exciting, challenging and... Read More

Discount Life Insurance Will Give You The Best Protection You Need

There is always a chance that there is a better... Read More

Is an HSA a Type of Insurance?

A Health Savings Account (HSA) is not a type of... Read More

Long Term Care Insurance - Low Cost Alternatives For Budget Conscious Seniors!

With Nursing home Cost's running $4,000 to $6,000 a month... Read More