Life insurance settlements can be great for both sides. For you, you get a lump sum payment. For the investor, he gets a great return on his investment that he’d be hard-pressed to find anywhere else.
But before you move forward with a life insurance settlement, you need to know these 4 things:

1. The older you are, the more you should get in a lump sum payment

Investors go into life insurance settlements with one thing on their mind – getting a good return for their money. Senior life settlements are far more profitable than life settlements for younger policyholders because investors know they’ll get the payout sooner by dealing with an older policyholder.

Additionally, investors wind up paying fewer premiums than they would for a healthy, younger person – meaning that there are fewer upfront investment costs with senior life settlements.

In exchange for providing an investor with these kinds of perks, you should be getting top-dollar for your senior life settlements. Don’t be afraid to negotiate; you’re entitled to more money than a younger person.

2.Being young isn’t an excuse for a small lump sum payment

While older people traditionally get more money in life insurance settlements, there can be some instances in which you’re entitled to more money. For example, if you’re a sick 40-year-old – and, thus, likely to collect your life insurance benefits sooner than a healthy 40-year-old – you’re entitled to a bigger lump sum payment. Don’t let an investor tell you that, just because you’re not a senior citizen, you need to accept a lower payment.

3. Life settlements are an investment – not a charitable act

If an investor tries to claim that he’s doing you a “favor” by entering into a life insurance settlement with you, you’re dealing with someone who’s being less-than-honest. After all, it’s not like he’s just “giving” you money. Instead, he’s using life settlements as an investment. The money he pays you now is much less than the payout he’ll get after you’re gone.

Sadly, some investors try to portray senior life settlements as some kind of “favor” they’re doing for senior citizens – in an attempt to low-ball them on a lump sum payment. Don’t be fooled.

4. Life insurance settlements are negotiable

Remember, life insurance settlements are business transactions – meaning that you don’t necessarily have to take the first offer you get. If you think that you’re entitled to more money, say so.A life insurance settlement should be attractive to everyone involved. If your potential life settlement doesn’t look that way, it’s time to find a new opportunity.