Life insurance has two values: a death benefit and a cash value. If you no longer need or can afford a policy it may be sold to a third party. It may be worth more than the cash value but less than the death benefit. As the policy owner you can change beneficiaries, use it as collateral, or sell it to another party. The third party becomes the new owner and beneficiary of the policy, pays the premiums, and receives the full death benefit when the original insured dies. The new owner is betting that the policy will pay more than what it cost them to take over ownership. Life Settlement providers must be licensed in the state where the policy owner resides.41 states have regulations in place regarding the sale of life insurance policies to third parties. Somewhat like real estate, a broker is used to solicit offers for a sale. Be sure to Seek the advice of a financial professional to assist in determining values and terms. Give us a call today to determine if a Life Settlement is in your best interest.