life settlement

Definition

The act of a life insurance policyholder selling his/her policy to an outside party for the fair market value of it. The outside party becomes the primary beneficiary of the policy and collects the funds after the seller dies. In some cases the market value of the policy exceeds the face value and that's why some people choose to sell the policy and reinvest the funds.

Use life settlement in a sentence

You may want to try and take on a life settlement if you really need to get a hold of some cash quickly.

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The life settlement was a win win deal as it was transferred at the exact value of the asset in question.

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They reached a life settlement agreement and we were all relieved that it was finally over and things were decided.

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life option viatical settlement provider