Talk to a local car insurance agent now:
(904) 425-1240
Press play below to listen to our audio commercial:

Laws Related To Settlement On Life Insurance Policy Differ From State To State

One of the main concerns in regard to settlement on life insurance policy is knows who regulates the settlement. There are certain laws that govern the settlement on life insurance policy and these laws generally differ from one state to another. However, many states have adopted what is known as the National Association of Insurance Commissioner’s model law for viaticals. However, even then it must be said that the regulations related to settlement on life insurance policy are still rather spotty.

Boon For Many

There no doubts the fact that prompt settlement on life insurance policy can prove to be a boon for people such as senior citizens that happen to be in poor health and whose financial situation is not the best either. When settlement on life insurance policy is achieved they stand to receive an amount of cash in lump sum that will be truly godsend.

The settlement on life insurance policy means that the seller gets to receive a considerable amount of cash which is given by the buyer in exchange for the seller’s insurance policy during the lifetime of the seller. Going for life insurance settlement helps the seller in many ways including being able to avoid having to pay any further premiums and is suits their dependents as well as they can receive benefits from the policy even before the policyholder has died.

However, as with every good thing, even when receiving settlement on life insurance policy you need to act with great care because there is always a possibility of frauds being perpetrated. You should therefore pay heed to warnings by insurance companies as well as trade groups about the risk involved in selling your insurance policy to unknown third parties.

Some of the reasons why you would want to go in for life insurance settlement are that your policy has ceased to be of much use; your beneficiaries won’t be in need of death benefits; and, the insurance premiums have become too unaffordable to continue.

A major advantage to taking out life insurance policy is that it is possible to get life insurance settlement loans against your existing policy and this feature will prove very helpful in allowing you avoid having to go for life insurance settlement in order to raise significant sums of money.

The beneficiary of the life insurance policy gets to receive settlement on life insurance policy in a number of different ways including lump sum payment, installment payment along with interest, checking account and finally, the company may hold on to benefits while only paying interest. Sometimes, two or more people may lay claim to being beneficiaries and will each demand settlement on life insurance policies; in such cases, it is left up to the courts to decide which person or persons are the real beneficiaries.