The life settlement industry appears to be a relatively new one, yet the industry as we know it today would never have existed without a century of history. Quite a few major developments have led to the emergence of the modern life settlement industry and, in turn, the ability of policy holders to sell their unneeded life insurance policies on a secondary market.
The first major development happened in 1911 on the Grigsby v. Russell court case ruling. The Supreme Court ruled that life insurance is transferable like bonds, stocks and other financial holdings. With this ruling, policy owners can now transfer their insurance policies as they see fit. This gave way to the trading of insurance policies via secondary markets by companies like Life Partners Inc.
In 2001, the NAIC (National Association of Insurance Commissioners) would outline the exact guidelines for the secondary market by releasing the Viatical Settlements Model Act. These guidelines exist to ensure good business practices and to avoid fraud on the secondary market. This is when the life settlement industry starting to become an industry of its own, despite a more "underground" trade having been going on for years.
Throughout the history of the life settlement industry, organizations such as Life Partners have been helping the owners of unneeded policies to get a much better return on their investment through the secondary market. These companies are a great option for policy owners because they provide a much better cash out value than surrendering their policies, and they're not a loan product. The only other options most policy owners have for their policies are to surrender them for a low payout, take out a loan against them or simply cancel the policies.
When you sell an unwanted policy, most firms like Life Partners, Inc. won't ask for service fees. So if you're able to sell through LPI, you'll get the sales proceeds almost in its entirety - there are no extra charges or deductions. Choosing to cancel a policy is like throwing away cash. Surrendering the policy for a small return or cash equivalent is essentially you depriving yourself of extra cash that could have been yours. Meanwhile, getting a loan that is secured by your policy will only add to your monthly obligations because you'll be coughing up more money for interest and loan amortizations. Don't throw away your money-opt for the sale of your policy!
Throughout the years of the secondary life insurance market's existence, both when it was still new and during its development, these companies have given policy owners and their kin a much needed alternative to existing options. You can use the money however you like, whether you want to put the money into your investments or use it to put up a business. You can pay your medical bills with it too. If during your life you decide that you don't need a life insurance policy, but don't want to waste all the money you've paid into it, life settlement firms like Life Partners can help get the money you spent on premium payments back for you.
The first major development happened in 1911 on the Grigsby v. Russell court case ruling. The Supreme Court ruled that life insurance is transferable like bonds, stocks and other financial holdings. With this ruling, policy owners can now transfer their insurance policies as they see fit. This gave way to the trading of insurance policies via secondary markets by companies like Life Partners Inc.
In 2001, the NAIC (National Association of Insurance Commissioners) would outline the exact guidelines for the secondary market by releasing the Viatical Settlements Model Act. These guidelines exist to ensure good business practices and to avoid fraud on the secondary market. This is when the life settlement industry starting to become an industry of its own, despite a more "underground" trade having been going on for years.
Throughout the history of the life settlement industry, organizations such as Life Partners have been helping the owners of unneeded policies to get a much better return on their investment through the secondary market. These companies are a great option for policy owners because they provide a much better cash out value than surrendering their policies, and they're not a loan product. The only other options most policy owners have for their policies are to surrender them for a low payout, take out a loan against them or simply cancel the policies.
When you sell an unwanted policy, most firms like Life Partners, Inc. won't ask for service fees. So if you're able to sell through LPI, you'll get the sales proceeds almost in its entirety - there are no extra charges or deductions. Choosing to cancel a policy is like throwing away cash. Surrendering the policy for a small return or cash equivalent is essentially you depriving yourself of extra cash that could have been yours. Meanwhile, getting a loan that is secured by your policy will only add to your monthly obligations because you'll be coughing up more money for interest and loan amortizations. Don't throw away your money-opt for the sale of your policy!
Throughout the years of the secondary life insurance market's existence, both when it was still new and during its development, these companies have given policy owners and their kin a much needed alternative to existing options. You can use the money however you like, whether you want to put the money into your investments or use it to put up a business. You can pay your medical bills with it too. If during your life you decide that you don't need a life insurance policy, but don't want to waste all the money you've paid into it, life settlement firms like Life Partners can help get the money you spent on premium payments back for you.
About the Author:
If you're looking for more information on life settlement companies such as Life Partners, then please visit our site. Life Partners Holdings is located in Waco, Texas.
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