Life settlements refer to the sale of a life insurance policy by the policyholder to a third party for a lump sum cash payment. The third party, known as the life settlement provider, becomes the new owner of the policy and assumes responsibility for paying future premiums.

• Life settlements provide policyholders with an immediate cash infusion. This can be particularly beneficial for individuals facing financial challenges, unexpected medical expenses, or those who require funds for other purposes.

• Higher Value than Surrender Value: The cash received from a life settlement is often higher than the surrender value offered by the insurance company. Policyholders can potentially get more money by selling their policy than by surrendering it.