Page 4 - The Lifeline Program White Paper

Basic HTML Version

LIFE SETTLEMENT:
AN ANTIDOTE FOR
THE RETIREMENT CRISIS
A life se lement is the sale of an existing life insurance policy by an elderly policyholder,
for more than the current cash surrender value. A se lement is a unique alternative to
surrendering a policy or le ing it lapse and can be o ered on term, whole or universal
life policies.
With a life insurance se lement, the purchasing company agrees to pay the life
insurance premiums for the remainder of the policyholder’s life, and in return, the
purchaser is paid the death bene t when the policyholder passes away.
Traditionally, these transactions make the most sense when life insurance policies
become too expensive or are no longer needed.
S E C T I O N O N E