Many older individuals are looking for ways to improve their investment portfolio or need some additional cash but don't usually have access to large sums of money since they are usually on a fixed income of some type. If the person is in his or her seventies or eighties or in poor health, however, he may have an important cash asset that he isn't even aware of.

Many people have purchased more than one life insurance policy over the course of their lives. What most people don't know is that as they age, they don't have to let these policies lapse if they no longer want them or can't afford the premiums for them. In fact, as you reach your golden years you can re-sell these insurance policies to a third party and make a nice tidy sum of money. You can then either use this money to enjoy your remaining years, to reinvest, or to pay medical or other bills as needed.

A life settlement isn't for everyone, but for those who qualify it can be a wonderful way to get needed cash and cut down on expenses (by eliminating a regular premium payment) at the same time. Generally a life settlement will be most beneficial to those who are in their seventies or older or individuals who have a serious illness that will shorten their life span.

In either of these cases, a broker can sell the life insurance policy to a third party for a lump sum of money. The policy then stays in effect with the new purchaser as the beneficiary. They are paying upfront for the policy knowing that some years down the road they will be the recipient of the pay-out. In the meantime, they take over responsibility for all of the premium payments.

Life Settlements Aren't Do It Yourself

If you are interested in selling an old life insurance policy and getting a settlement for it, be sure to talk to a qualified Life Settlement Broker. While many people can help you to do this, including financial planners, there are a relatively small number who are experienced enough to get you top dollar for your life insurance policy. These brokers will often handle nothing but these types of transactions and will be well-versed in the ins and outs of the insurance industry.

Be sure that you are working with a qualified broker by asking about their background, education and whether they keep up to date through continuing education. Some states now have licensing requirements, so check on the laws in your state. Membership in the Life Insurance Settlement Association (LISA) is also an indication of experience and professionalism.

Talking to a settlement broker is the best way to find out if a life settlement is right for you. If it is, he or she can get you thousands or dollars or more for a life insurance policy you were going to let expire. It's a great solution for getting extra cash where you weren't expecting it.