life settlement client contract template

So as long as the time horizon is 'reasonable', the policy can actually have a remarkably appealing implied rate of return to an investor, for which the current policyowner can be paid! After all, in the hands of an investor, a life insurance policy is simply an 'investment' that has ongoing cash flow requirements (premiums) but will eventually mature as a (much larger) death benefit later. Technically, though, there is a third option to the 'keep versus lapse' decision of life insurance: to sell the policy to a third party in a transaction called a 'life settlement' to an (institutional) investor who might be willing to pay more than just the policy's cash value (or the $0 value that might be available if the coverage just lapses on its own). Term insurance policies are usually expected to lapse, and in practice even 'permanent' insurance often ends out being surrendered before it is ever paid out as a death claim. The classic view of life insurance is that it is purchased as long as needed or desired, and then lapsed (or if there's any cash value, surrendered) when it is no longer necessary.

Life settlement client contract template