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Life insurance policies are purchased by the insurers in the hope that they will help them weather the storms during all the tough phases of life. With changes like increase in average life expectancy and drastic decrease in the morbidity rate, there has been exploitation of seniors by the insurance firms. Life insurance policies held by seniors can be sold as life settlement policies to a third party in order unlock the cash value of the policy. Once the policy has been purchased, premium payments have to be done by the buyer that in turns becomes the beneficiary of the policy. Life settlement policy is similar to viatical settlement policy that was launched for the terminally ill AIDS patients in early 90’s. The difference between the two is that the life settlement policy holder should not be ill or suffer from any terminal disease. In cases where the insured is expected to live less than two years life settlement policies work in similar way to viatical settlement policy.

The process of the life settlement involves the sale of an insurance policy by an aged person having a limited life expectancy. The insurance policy is purchased by the third party or any other investor.The investor pay a lump sum amount to the policy holder as a result becomes responsible for the premiums and liabilities of the purchased insurance policy. There are a number of life settlement companies in the US. The New York Life settlement companies and plans have been largely modified recently to make them more acceptable and genuine for the policyholder’s point of view. These plans and policies have been made more flexible, confidential, and private in their nature. These policies are now more acceptable to the customers and they feel more confident about them. More modification proposals are supposed to be brought in to make these settlement plans and policies more and more acceptable and dependable. The efforts are also on to make these settlement plans better and more flexible for the grown up and old people.

The life settlement process involves the sale of a life policy from a policyholder with limited life expectancy. The policy is purchased by a third party investor with the aim making a profit.The investor pay a lump sum amount to the policy holder as a result becomes responsible for the premiums and liabilities of the purchased insurance policy. There are a number of life settlement companies in the US. Due to complaints, there has been numerous modifications to the life settlement process to make it more attractive to policyholders. This is escpecially true for new york life settlement companies. These plans and policies have been made more flexible, confidential, and private in their nature. These policies are now more acceptable to the customers and they feel more confident about them. More modification proposals are supposed to be brought in to make these settlement plans and policies more and more acceptable and dependable. The efforts are also on to make these settlement plans better and more flexible for the grown up and old people.