Cash Surrender Value vs. Life Settlement Market Value
Qualified policyholders over the age of 65 or who have been diagnosed with a life-threatening illness may be eligible for a cash offer from the life settlement option. A life settlement is an alternative to surrendering a life insurance policy for its cash value. A life settlement allows policyholders to access a secondary market for life insurance policies where state-licensed financial institutions compete to purchase policies as an investment. A life settlement payout is always higher than the cash surrender value.
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