Is senior life settlement very easy to obtain?

advancedsettlements3If you are one of the few people who are wondering what the hullabaloo about senior life settlements insurance is all about then here is a brief explanation. A senior citizen over the age of 70 can decide that he or she does not need any more insurance for the remaining part of their lives. But they have already bought a life insurance prior to making this decision. Now what do they do with such a life insurance policy with which they want nothing to do with as they are forced to pay the regular and periodic premiums? Simple, they just opt to sell it off for a sum of money.

Who buys the life insurance settlement? Well, any insurance company or any party that is interested in buying it a part of their investment policy will do so for a sum of money that is below the face value of the insurance policy but will have to pay more than the cost value of the policy. The usual average amount of money received in return for the insurance policy is around 16 % of the face value of the policy this it is not a norm. Many factors will decide the actual price at which the policy would be sold.

If you ask me how insurance companies approach senior life settlement then frankly speaking they do not seem to be huge fans of such an arrangement. Its common sense isn’t it? The insurance company dislikes paying the death benefit which obviously is a larger amount when they can dole out lower sums of money as surrender value of the policy and hence make the sale of policies very difficult.