Old People Keep Grip on Life Policy

The main purpose of life insurance is to replace out income of a person’s death who is bread winner of the family. Most families accept it as a necessary expense similar to other forms of insurance like auto or homeowners insurance.

The insurance company collects premiums for many years ultimately leading to dropping in of the policyholder. The insurance companies would count up on high lapse rates which would ultimately lead to lowering up of insurance premiums. From the past many years investors have realized that there is an opportunity and have began to step up the offering to purchase the policy from those who no longer wants the life insurance policy. This transaction can mean big money for the investors.

As a result the investor who purchase large baskets of policies, except a return profit on investment. This is a form of Life Settlement policy and there are a number of guidelines which need to be involved within it:

• The insured person’s age should be more than 65 years.
• The face amount of life insurance must be between atleast $200,000. It is because time and resources are required which are very case sensitive issues and not economical for smaller cases.
• Both the term life insurance and cash value policies are not eligible in this case.
• The payouts for the same vary based on the life expectancy of the insured person.

So if one is planning to sell the life insurance policy then they need to get several quotes which offers help from investors which vary widely. It is still an unregulated industry and one would need to get help from trusted life insurance representatives for the same.