What is life settlement all about?
A life insurance policy when sold to an investor for a consideration of cash is termed as a life settlement. In such settlement the amount realized is comparatively higher than the policy’s cash surrender value, but is lower than the death benefit. Life settlement are opted and pursued by people when there is retirement pay requirements, long term health care, and payment of any bulk amount or everyday expenditure. In a life settlement transaction, there is transfer of ownership of policy from the sellers to the buyer.
Purpose of life settlement calculator
The major benefit of a life settlement calculator it that it saves precious time and energy. Many of the policyholders prefer to use a life settlement calculator to get an enhanced scheme and proposals of a policy’s resale value. This help in the process of reaching out to life settlement brokers for getting even more formal quotation. It also helps the policyholder to know whether it is worthwhile hiring a life settlement broker or not. So, an appropriate calculator should provide an approximation indicating whether or not it’s worth pursuing a process of securing a life settlement.
Factors to be considered on Life Settlement Calculators:
- An instant life settlement quote shall be first priority requirement for settlement calculators.
- True and reliable assessment of a life insurance policy.
- Availability of various options on the secondary market.
- A Financial comparison through which policyholders should immediately determine whether it is good to sell a policy or to keep it.
- There are other factors which are not considered by life settlement calculators, so policy holders should take a note on this.
Age, gender, health information, size & type of your policy, the type of insurance company, premium, the cash value of your policy and a desire to sell a portion of policy are some of the basic information upon which value of policy depends.