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.

Generally, anyone over age 70 who has over $100,000 of life insurance coverage may qualify for a life settlement regardless of health conditions. Other factors considered in the negotiations are the policy's cash and surrender values and the cost of premiums. A basic principle to remember is that the older the age of the client and/or the more health complications, the higher the settlement.

The proceeds from the life settlement are tax free up to the cost basis (premiums paid since the policy's inception). All types of life insurance are considered for life settlements. Please click on the Power Point Presentation below to learn more about life settlements.