Life insurance is an important investment. In the event that you pass away, life insurance will be the only way to guarantee that your family will receive money to make up for your list income. However, the fact is that many senior citizens are stuck with life insurance policies that no longer meet their needs, making them consider senior life settlements.

There are many reasons why a senior citizen may no longer need their life insurance policy. Some people cannot afford to pay the high premium payments. Others may no longer need the policy because the beneficiary is deceased. However, regardless of the reason, life insurance companies don’t provide policyholders with information on how to properly get rid of an unwanted life insurance policy. However, there is hope. If you’re a senior citizen with a life insurance policy you no longer want, you may qualify for a senior life settlement transaction.
There are several qualifications that a senior citizen must meet before they can apply for a life settlement transaction. First, the policyholder must be 70 years of age or older. So, even if you can’t afford your premiums but are not over the age of 70, you can’t apply for a senior life settlement. The second requirement has to do with the face value of the life policy; it must be worth $250,000 or more. Again, this requirement for life settlements is not negotiable.

There are other requirements, too. In order to qualify for a life settlement, the policy’s market amount must be more than the cash surrender amount. According to professional life settlement brokers, the amount depends on several factors, such as the death benefit, price of premiums and the life expectancy of the insured.

However, they agree that one of the major factors in determining the market value of a life settlement transaction is life expectancy.