When does a Life Settlement make sense?

A life settlement may provide a better alternative than allowing an unneeded or underperforming policy to lapse or be surrendered for its cash value. Life settlements are considered for a variety of reasons, including:

• The beneficiary for whom the policy was purchased is deceased or no longer has a need
• Using the proceeds to purchase replacement coverage
• Having financial obligations or unforeseen financial needs
• Gifting to family members or contributions to charity
• No longer wishing to pay premiums or premiums have become unaffordable
• Undergoing bankruptcy liquidation or a divorce
• Estate taxes are no longer an obligation or changes in estate law
• Liquefying an inactive asset
• Buy/sell funding is no longer an obligation
• Payout or change in deferred compensation
• Eliminating the need for the Key Man