Life settlements involve selling a life insurance policy to a third party for more than its cash surrender value but less than its death benefit. The buyer then assumes responsibility for paying the premiums and receives the death benefit when the insured person passes away.
Individuals aged 65 and older who no longer need or can afford their life insurance policies.
Those whose financial situations or health conditions have changed, making their life insurance policies less relevant.
Individuals facing financial difficulties who could benefit from a lump sum payment.
People looking to liquidate assets for estate planning purposes.
If the cost of maintaining a life insurance policy becomes too high, selling it through a life settlement could provide relief.