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FAQs - Life Settlements

What are life settlements?

A life settlement is the sale of a life insurance policy, prior to death, for less than the policy's face value. The insured under the policy is called a life settlor. The institution that buys the policy is called a life settlement provider. Life Settlement providers range from major institutions and hedge funds to private equity and wealthy individuals. Additionally, there are persons called brokers, who help with the sale of the policy.

A life settlement allows the insured to enjoy the proceeds of their policy's death benefit while they are still alive.



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