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Life Insurance For Senior

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A Life Insurance Settlement is the sales of a life insurance policy to a third party in exchange for a cash settlement in excess of the cash surrender value of policy - even if none exists! This is also called as Life settlement, Insurance settlement and also Senior settlement.

Typically, a Life insurance settlement or senior settlement is about three to five times the cash surrender value of the policy.

Life settlement: When an individual who does not have a terminal or chronic illness sells a policy for other reasons, including changed needs of dependents, wanting to reduce premiums, and cash for meeting expenses, that is known as a Life settlement.

Viatical settlement: When an individual with a terminal or chronic illness sells his or her life insurance policy that is known as a Viatical settlement.

Hitherto, elderly senior Americans with life insurance policies they do not need or cannot afford to keep up have had very little option. They will let the policies lapse or sell them back to their insurers. Now lots of them are glad to have an alternative, i.e. Life Insurance Settlement or Senior Settlement. Seniors may now be able to sell their policy for far more than the cash surrender value the insurance carrier would offer.

When you go for Life Insurance Settlement or Senior Settlement, the life insurance policy owner sells his or her contractual rights under the policy at its present market value in exchange for a lump sum cash payment, which payment exceeds the cash surrender value of the policy.

The purchaser of the policy will then become the new owner and the new beneficiary of the life insurance policy and is then responsible for making all of the future premium payments. The new owner now collects the full amount of the death benefit when the insured dies.

Life Insurance settlement or Senior settlement present a unique opportunity to the senior policy holder to extract the maximum possible value from an existing life insurance policy and repurpose those funds for whatever financial needs may exist.

Seniors can use the money received from Life Insurance Settlement or Senior Settlement, to purchase new insurance, travel the world, start a business, buy a property or fulfill their dreams. The money is theirs to simply enjoy and use it for any reason they can think of. In fact, seniors can use the cash settlement for medical expenses, living expenses, or anything they desire-with no restrictions.

There are various reasons why seniors sell their life insurance policy and opt for Life Insurance Settlement or Senior Settlement. Why Sell Your Life Insurance Policy?

1. If you are chronically ill, selling your current life insurance policy provides needed funds to cover financial burdens caused by your illness. A viatical settlement gives you the ability to regain needed financial security.

2. If you are over the age of sixty-five, a life insurance settlement or senior settlement maximizes your current assets by eliminating premiums and getting funds that can be used today.

3. Pay off debts.

4. Make funds available for other investments.

5. Turn a lapse insurance policy into cash with Life settlement.

6. Pay your medical care bills.

7. Finance your retirement.

8. If you are a corporation, selling corporate owned life insurance lets you regain back premiums paid on no longer needed policies.

9. If you are a non profit organization, selling a gifted life insurance policy provides funds that can be used now and also eliminates premiums.

10. If you managing an estate, selling your current life insurance policy will help manage changes in estate size, eliminate premiums, and liquidate policies that no longer are needed.

What Insurance Policies Qualify for Life Insurance Settlements?

To find out whether you qualify, here are some of the requirements.

(A) Must be at least 65 years of age

(B) The face value of the policy is at least $50,000

(C) The insured has experienced deterioration in health since the insurance policy was issued; life expectancy is under 15 years

(D) The insurance policy is in effect beyond the two year contestable period

(E) You Are Over 21 with a Life-Threatening Illness ? Viatical Settlement

But any policy owner, including individuals, corporations, charities or trusts, may sell any life insurance policy, including group and term policies.

What types of polices are purchased?

1. Government issued policies

2. Term Life

3. Universal Life

4. Survivorship policies

5. Many Group types of policies

6. Corporate Owned Life Insurance

7. Whole Life

8. Basically All Types of Life Insurance Policies

The life insurance settlement value could be potentially much higher than the cash settlement of your life insurance policy. Do not continue to pay expensive premiums for coverage you no longer need, and do not surrender the policy or let it lapse. The Life insurance settlement, Senior settlement or Viatical settlement solution is typically the Win-Win scenario that you have been looking for.

Life Insurance For Senior

Three years ago when David Elliot was told he had a brain tumour, life was never going to be the same again but after a life-saving operation his recovery has been good. Yet he lives with the knowledge that the tumour could re-occur at some stage in the next 10 years. He will also take tablets to reduce his epilepsy for the rest of his life.

Mr Elliot, who is now 41, thinks he is the "luckiest man alive" to have survived. But he can no longer obtain life insurance.

Mr Elliot and his wife have a two-year-old son, Jack, and last year they moved from London to Barnsley in Yorkshire. The family remortgaged 95,000 pounds with the Woolwich but David was not able to cover the debt with life insurance of his own.

"The Woolwich's underwriters refused to give me life insurance cover. Jayne has life and critical illness cover for the entire mortgage," he says.

The chances of getting life cover are especially unlikely if an application is made during the first three years of having been diagnosed with a nasty type of cancer or having had a heart attack. If the person makes a full recovery within a given period, usually up to five years, companies will consider insuring them again but apply a "loading" on to the policy. In some cases this can be as much as 10 times the premium that others pay.

For example, a male the same age who has a clean bill of health and wants decreasing cover life insurance over 25 years on a mortgage of 95,000 pounds would pay just over 12 pounds per month with Legal & General.

For the first four years after an operation, someone in Mr Elliot's situation would be refused life insurance. After this period, life cover should be obtainable "but at a very high premium".

After underwriting, a standard quote of 12 pounds per month could in fact rise to more than 150 pounds per month, although the additional premium wouldn't necessarily last for the whole term of the policy. Insurers would only start to consider ordinary premiums after approximately ten years post operation and with a full recovery

The life company which underwrites for high-risk clients (those who practice extreme sports or with medical conditions) is the Special Risks Bureau (SRB). It claims to have a success rate of 70 per cent when placing its clients with insurers. SRB confirmed that it would be another year before they could consider an application from Mr Elliot.

Premiums would inevitably be heavy because of his epilepsy and because there would still be an increased mortality risk compared to the general population. Unless a policy specifically excluded cancers, Mr Elliot would almost certainly be refused any critical illness cover.

As a result of independent financial advice, the Elliot family has saved up six months' emergency money, effectively a self-insurance policy.

And there is some good news for David. Alliance & Leicester, his previous mortgage lender, has allowed him to maintain 55,000 pounds of life cover from an existing policy - albeit at a cost of 45 pounds a month. This is called a Guaranteed Insurability Option (GIO) and means the insurance company will allow the insured up to half of the original amount assured without underwriting.

Anyone who needs help with these issues should contact SRB on 01245 491417 or specialrisksbureau.com or lifesearch.co.uk

It is not only serious medical complaints that can affect life insurance cover.

Justin Hopwood, media and marketing manager of Gloucester Rugby Club had his initial application declined because of a minor skin complaint. He and his wife are in the process of moving to a new home and they decided to buy life and critical illness insurance as part of the purchase.

"I have an unusual condition called Becker's nevus which is nothing more than a slight discolouration of a small patch of skin. I was somewhat surprised when Scottish Provident announced they would not offer me cancer cover," says Mr Hopwood.

Numerous visits to doctors and endless phone calls to Scot Prov eventually sorted things out. Mr Hopwood's advice to anyone in the same situation is to make an application early and support it with a full copy of your medical history.

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