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Article: Putting a "For Sale" Sign on Life Insurance.
- Article from:
- Kiplinger's Retirement Report
- Article date:
- June 1, 2002
CopyrightCOPYRIGHT 2002 The Kiplinger Washington Editors, Inc. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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YOU'VE PROBABLY seen ads for "senior settlements," a way seniors can sell life insurance they no longer need or want in return for cash. But what exactly is a senior settlement, how does it work, and is it something you should consider?
DON'T BET YOUR LIFE
Senior settlements are similar to viatical settlements, in which terminally ill people sell their life insurance to third parties who continue to pay the policy premiums and ultimately collect the death benefit. With viaticals, life insurance is usually sold through a broker to individual investors, and the insured individual (the seller) isn't expected to live longer than six months to a year.