Life insurance is an important financial tool that serves many purposes, affording its owners and their dependents invaluable peace of mind in the event the unexpected happens. By the time most people reach the age of 70, however, the original reason that motivated them to purchase coverage no longer exists. What's more, the cost of life insurance only climbs as we age to reflect our increased mortality, making premium payments increasingly burdensome through the years. This may explain in part why the vast majority of life insurance never pays a claim – most owners eventually surrender their policies or simply allow them to lapse.

 

In lieu of forfeiting one’s policy to the issuing carrier for comparatively little or nothing in return, a life settlement may enable the policy owner to extract considerably more value for his or her asset and use the sale proceeds in unlimited ways.