Senior Settlements Cash

Senior Settlements leading the industry

During the AIDS crisis that began in the 1980s, investors bought policies from terminally ill people who needed cash for medical care and living expenses in what came to be known as "viatical settlements." Now, "senior settlements (life settlements)" have taken their place, and the industry is booming.

Say you're a 70-year-old with a $1 million whole life policy that you don't want any more.

A senior settlement firm may offer you from 10 percent to 30 percent of the policy's face value to take over the premiums for you. That's three to four times what you'd get by simply cashing in the policy with the insurer. Also if you were going to lapse a policy that has no cash value the upside potential is unlimited. Senior settlements are unlocking value in life insurance policies.