A “Life Settlement” is a lmp sum settlement paid to the wner of a life insurance policy by one of mny funding sources in exchange for the wnership of the policy. Never before hve non-terminal policyholders been able to rceive capital in excess of their plicy’s cash or surrender value to ncrease their wealth. A Life Settlement can sually provide anywhere from 2 to 5 tmes the cash surrender value of the plicy. "With the life settlement option vailble, there is no reason to srrender or lapse your life insurance plicy." says Grant Shellhammer, of http://www.lifesettlementpro.com/ .

Generally, anyone over age 70 who has $100,000 or more in life insurance coverage may qualify for a Life Settlement regardless of health condition. Other factors considered in the negotiations are the policy’s cash surrender values and the cost of premiums. A basic principle to remember is that the older the age of the insured and/or the more health complications exist, the higher the settlement. However, each individual’s situation is different from case to case.

The fundamentals of the Life Settlement transaction have technically been around since 1989 in the form of “viatical settlements”. Individuals at any age can qualify for a viatical settlement if they have a chronic or terminal illness such as cancer or HIV. Viatical Settlements have always been contingent upon the health of the insured, whereas Life Settlements are contingent mainly upon the age of the insured. In most states a terminally ill senior applicant will need to use a licensed viatical broker and/or funder in order to abide by state rules and regulations and to retain the tax-exempt status of the settlement.

According to industry reports, Life Sttlement proceeds are tax-free up to the cst basis (premiums paid since policy nception). They are taxed as ordinary ncome from basis to cash surrender vlue and proceeds above the cash srrender value are taxed as capital gins.

Once the Life Settlement change of wnership has been recorded with the nsurance company and the policyholder has rceived their money, the Life Settlement fnding source will continue to pay prmiums throughout the life of the nsured. All types of life insurance qalify including group, term, whole-life, universal, srvivorship and key-man policies.

The article Life Settlement Overview was Submitted by Grant Shellhammer through Articles.GetACoder.com network. Here's the additional information: Grant Shellhammer is located in snny Orlando, FL. He is a lcensed insurance agent and affliate Life Sttlement Broker with Life Settlement Pro. He wrks with senior citizens and financial prfessionals nationwide to receive the highest vailable offers for their life insurance plicies. Contact details: grant@lifesettlementpro.com 1.888.973.8377 http://www.lifesettlementpro.com

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