One of the most common reasons why someone ends up in court is to defend themselves against a lawsuit. Whether you’re the one being sued or you’re the one filing the lawsuit, the cost of litigation can quickly add up. Depending on the severity of the case and the amount of time you have to spend in court, you may end up spending hundreds or even thousands of dollars on your legal defense. This can put a serious financial burden on you and your family. Fortunately, there are several ways that you can help reduce the cost of your legal defense. One of the best ways that you can do this is by seeking funding for your legal defense through a settlement. Read on to learn more about why you should consider settlement funding to help pay legal expenses.

What is a Settlement?

A settlement is the negotiated and agreed-upon conclusion of a lawsuit between the parties involved. While both sides may be unhappy with the outcome of the lawsuit, they agree to let bygones be bygones and move on with their lives. A settlement may or may not involve the payment of money or assets by one or both parties. If a settlement does involve the payment of money, it is usually in the form of an agreed-upon amount that is paid by one party or the other to the courtappointed special master or arbitrator who resolves the case.

Why You Should Consider Settlement Funding to Help Pay Legal Expenses

Settlements offer several advantages for both parties. The defendant gets the opportunity to put the lawsuit behind them and move on with their life. The plaintiff, meanwhile, gets an amount of money or assets that they can use to pay their bills and resolve their financial issues. Both of you come out better after a settlement.

What is Settlement Funding?

Settlement funding is a way for defendants to put their own money toward the cost of their defense. Rather than an insurance company or other third party footing the bill for your legal defense, you use the money that you have saved to pay your own legal fees. There are a variety of funding sources that you can choose from when you apply for settlement funding. Each one of these funding sources has its own rules and guidelines that you need to follow to qualify for funding and to make sure that the money that you receive is actually legitimate.

How to Apply for Settlement Funding

The first step in any settlement funding process is to apply for funds. Settlement funders will often require a significant amount of documentation before approving an applicant’s request—which could include personal financial statements, W-2 forms from the past three years, Federal tax returns from the same time period, and possibly even credit reports.

This ensures that only those who are most likely able to repay their loans receive money which often ranges anywhere between $5-$500 thousand dollars with terms set out at 3-12 months.

How Much Does Settlement Funding Cost?

The amount that you are approved for will vary from company to company, but on average, you can expect to receive $5,000-$10,000 for your legal defense. Keep in mind that this is just the average amount. Your own personal circumstances will affect the amount that you are approved for.

Is Settlement Funding Right for You?

Settlement funding is a great option for people who have a lot of unmet expenses. This would include things like unpaid bills, credit card debt, and even your mortgage or home equity loan. If you have a significant amount of unmet expenses, then this could be a good source of funding for you. Keep in mind, however, that it may take longer to get approved for this funding source compared to other applicants.

Final Words

The cost of litigation can quickly add up. Depending on the severity of the case and the amount of time you have to spend in court, you may end up spending hundreds or even thousands of dollars on your legal defense. This can put a serious financial burden on you and your family. Fortunately, there are several ways that you can help reduce the cost of your legal defense. One of the best ways that you can do this is by seeking funding for your legal defense through a settlement.

In a nutshell, the concept behind it goes like this: We all know that having an something right at the moment is better than getting the same thing down the road. It's better to have $50 dollars in your hand now than $50 dollars in your hand 3 years from now. Two things about this concept are important to understand. If you've got the money promised to you a 3 years from now, you've got to defer spending it for that time. Makes sense, right? It's not hard to understand that you can't spend what you don't have. But there's more.

You also miss the chance to make that money grow by investing it. This is a quick example of one of the big ideas behind investing-The Time Value of Money. The interest rates that we all hear so much about are the way that the macrocosm of a national or in some cases international economy determines the Time Value of Money. There are some other considerations that you'll need to have a look at as well to get a complete understanding of this idea. The next is what economists call the Present Value. This all may sound like a lot, but it's really just another simple concept.

Take that $50 dollar bill that we were using as an example. Simply put, the Present Value of that note is determined by the amount that you can earn today with it. If you've got that money in your hands, you can invest it or spend it, but right at the moment that it rests in you hands it's worth 50 bucks. That's easy. Now, we'll add a little something to the mix.

There's another idea that we should look at just so our whole treatment of the Time Value of Money is complete, and that's called, as you might have been able to guess, the Future Value. So let's have a look at what this means by taking our $50 dollar example again. The value we just discussed is of course the amount that you can earn in the future and one of the things that determines that is the interest rate. This is the lynch pin that determines the Time Value of Money. You might be asking yourself why this is important-there's a simple reason for that too.

If the interest rates are low you might get more for your money in terms of value by spending it now. This is just one of the decisions that you'll need to make when you're thinking about investments of various kinds, including the ones that you want to make over the long and short term.

How Does This Relate to Structured Settlement Factoring?

Structured settlement factoring is based upon principals of time value of money. Is it better to wait years for your money, or to get your money now? The simple answer to this question is that it is better to wait for your money due to the discount rates applied to a structured settlement factoring transaction. The more complex answer is "why" do people need cash now for their future payments. Structured settlement factoring is setup for individuals who are in desperate need for money, not for individuals who have other options besides factoring their settlement payments.

It is always best to consult with a financial professional before cashing out a structured settlement or annuity policy. A financial professional will be able to help you find other options, if available, and if not available will be able to help you complete the process of factoring a structured settlement.

Senior life settlement policy is designed specially and issued to the senior is to make them comfortable, protected and secured and recover money during illness. Senior life settlement policy is the lengthy process and also a chain process, because at first the life insurance settlement company issues the life settlement policy to the person required and the person sells the life settlement policy to another and the process goes on and at the last the life insurance settlement company itself purchases the life settlement policy. The policy holder of the life settlement policy receives the benefits and premium payments at the time of maturation.

Life Insurance Settlement Company issued policy in two ways, one is life settlement policy and the other is viatical life settlement policy. Generally, life settlement policy is issued will be with expectancy and depending upon the life settlement policy expectancy, life settlement policy will be sold in the market. Usually, life expectancy of the life settlement policy will differs and based on the life expectancy and requirement of the buyer, it will be sold in the market. The amount or premium for life settlement policy will also differs, because as per the requirement of the individual life settlement policy will be sold.

Senior life settlement policy fetches more demand among the seniors because it provides protection and security to the policy holder during their old age. Senior life settlement policy is issued in almost every part of the world and it has been issued by more number of life insurance Settlement Company in different types. Senior life settlement policies are issued with regards to the statutes, rules, and regulations of the state and federal government of the appropriate state, where life settlement policy issued. Life settlement policy can be made effective with the help of the policy brokers who are involved in the market. The policy holder of the life settlement policy should compile with the terms and condition of the policy issued in the state.

Some are direct purchasers of structured settlement payment rights. Other companies utilize brokers or intermediaries to procure potential sellers. Our only issue with this practice is that often the fees payable to these intermediaries is not transparent in the transaction. And, like all legitimate fees payable to parties that add value to the transaction, the brokers fee is deducted from the transaction.

We believe in practice that this should be fully disclosed to the seller in advance, but often it is not. If a party adds value to the facilitation of the transaction, they are entitled to compensation. The importance of this statement will become evident in due course.

First let's understand that purchasers, factoring companies that is, cannot purchase a Structured Settlements per se.

What a factoring company purchases is the future payment rights of the Structured Settlement. In essence a Structured Settlement factoring company purchases the future payments to be received by the seller for a discounted present value amount.

Structured Settlement payments are discounted to their Present Value (based on the factoring companies criteria) resulting in a lump sum payment that will be less than the sum of the payments over time. Simply put, a dollar is worth more today than it will be tomorrow.

Structured Settlement Factoring companies calculate this cost of money into their calculations when providing you with a quote by using a discount rate. If the Structured Settlement factoring company is using a line of credit for example to purchase future payments, they must pay interest costs on the money they are borrowing. That cost is calculated into the quote they provide the seller. Hypothetically the lower their costs, the better the quote will be for the seller of the structured settlement payments.

According to a 2004 California Attorney Generals report, the average national discount rate is 19.2 percent. Today discount rates range between 9.5%-18%. The average is somewhere in the middle.

Why is this important?

Let's say you have a stream of payments equal to $1,000 per month payable for 10 years. That equals a total structured settlement payout over ten years of $120,000, ($1,000 x 12 months x 10 years).

However, the value of those payments today using a discount rate of 18% is $55,498.00. Our example does not include legal fees or other legitimate costs that might be associated with the transaction which impact the final amount paid to the seller.

Keep in mind that advertising costs, broker or intermediary fees and any legal fees will be figured into the final amount payable to the seller. Factors that contribute to determining the amount of the discounted rate of return include the following:

Risk: future money carries some risk that it may not be paid.

Lost investment opportunity: you can't invest and earn a return on money that you're waiting for. You can invest money you have today, which makes it worth more.

Market finances: as interest rates and inflation climb, the value of tomorrow's dollar gets smaller and smaller. That means you will not get paid as much today if interest rates and inflation are high (or are expected to get higher).

Often factoring companies add "back-end" fees into the transaction. The initial factoring discount indicated may be low (8%-9%). However, by tacking on extraneous fees to the transaction, the ultimate cash paid to the seller is greatly reduced.

Remember, All, as they say, that glitters is not gold?"

BestFACT, LLC (BestFactoring) is a specialty finance company that provides lump sum payments to individuals receiving periodic payments. For more information regarding Cash For Structured Settlement Payments, contact BestFACT, LLC or email us at [email protected]

Obtaining cash for annuity payments is a rather complex process and requires the assistance of a structured settlement specialist. This can either be an attorney or professional who has been trained in this field. You can begin the process by contacting the company who organized your structured settlement or you can choose to work with another individual.

When you sell annuity payments to a private investor or financial institution, you assign them the right to future payments in exchange for a lump sum of cash. Annuity payments can be sold in whole or part. For example, if your structured settlement provides payments for twenty years, you can sell one to twenty years of payments.

The first step to obtaining cash for annuity payments requires you to determine how much money you need. Many people choose to sell their structured settlement payments to pay off debt, medical expenses or college tuition. Others desire cash for investment purposes such as purchasing stocks and bonds or real estate.

The second step requires you to gather your structured settlement details. The note investor or financial institution will need to know the name of the life insurance company backing the annuity payments, along with the exact dates, amount of each payment and how many payments are remaining.

Additionally, you will need to inform the investor of how much money you need and how many payments you wish to sell. This information allows the note buyer to determine the present day value of your structured settlement.

The investor will review the information and contact you to discuss various payment options. Private investors who specialize in structured settlements typically have access to a number of annuity buyers and will be able to connect you with those who offer top dollar for future annuity payments.

The initial consultation will take about one-half hour of your time. You want to feel at ease with the investor and should seize this opportunity to ask questions and obtain references. Be certain to contact referrals and conduct research on the company through the Better Business Bureau.

Once an annuity buyer is located for your structured settlement, you will receive documents which will need to be signed and notarized. As required by state law, this process takes a minimum of 3 to 10 business days to complete.

The signed documents are then sent to a factoring company who facilitates the underwriting process. Once the underwriting process is completed, the transaction must be approved by a judge who authorizes the transfer of payments. Typically, you must have a compelling reason to sell your annuity payments for cash. Reason being, structured settlements are issued to ensure the recipient will have funds to cover living and healthcare expenses. Many judges are reluctant in allowing individuals to sell their payments for cash unless they show just cause.

Before you attempt to obtain cash for annuity payments, take time to conduct thorough research. Investigate several note buying companies and speak with at least three consultants prior to making your decision. This will help ensure a positive experience when obtaining cash for your structured settlement.

Believe it or not, but seniors can take advantage of something called life insurance settlements to finance their retirement. This goes against what many seniors believe, but in the face of poverty and the final years spent on welfare many seniors decide that it really is a pretty good option. Basically, life settlements occur when a senior chooses to sell their life insurance policy for a price lower than the face value, but still large enough to take care of them. By cashing in their life insurance policies via a senior life settlement these individuals are securing their futures. This is the case because seniors will receive a cash payment for their life insurance policy. It is not the face value of the policy, but it is still a pretty good chunk of it. Certainly, enough to help individuals prepare for their retirements and pay for their own food, housing, medical expenses, and even travel!

Many seniors don't like the idea of elder care and life settlements because they want to leave money to their families when they die. However, no family would want to see their mother, father, or grandparent suffer throughout their final years financially when there is a way to avoid it. Not to mention, these individuals can be frugal with their money and still manage to save enough for their families after they are gone.

If you are worried about your financial future and most specifically your retirement then you must consider a life settlement offer if it is available to you. Your fears will be eliminated and you can really enjoy your retirement years like you had always hoped you would. Remember, however, that a life settlement is not the same as cashing in your policy with your insurance company. You will get a much larger sum through a life settlement so focus on this and even have a professional help you get the largest sum for your money.

Caitlina Fuller is a freelance writer. Seniors can take advantage of something called life insurance settlements to finance their retirement. This goes against what many seniors believe, but in the face of poverty and the final years spent on welfare many seniors decide that it really is a pretty good option. Basically, life settlements occur when a senior chooses to sell their life insurance policy for a price lower than the face value, but still large enough to take care of them.

When we are young and have all the zeal in our lives, then the best thing to do is to use the zeal and the enthusiasm to make sure that we make most of our lives. A known fact is that old age brings in many problems and definitely not being able to work and earn a monthly income is the most traumatizing thing because it leaves one with a lot of insecurities. However, a life settlement can now actually help these retired senior citizens to get a new zeal in life and to lead life without any tension and hassle.

Life settlement is one of the best things that could have happened to the retired senior citizens. With the introduction of this policy, the senior citizens have definitely found a new way to lead their health life and to be able to take life as it comes. Money is one of the most important things in today's time. Therefore, it is very important that each one of us has enough money to be able to live life properly and to be able to meet any sort of an emergency situation without having to take the help of any body else. Therefore, in such situations, a life settlement policy is the most apt thing that can help any senior citizen to meet their financial requirements and to be able to lead life according to their own terms.

A life settlement is nothing but a simple financial transaction. In this transaction, the person who wants to opt for this policy needs to sell off his or her life insurance policy to a third party who pays the sum insured and a little more. It is definitely a good move because by selling off the life insurance policy to a third person, the owner of the life insurance policy gets more money than by selling it off to the insurance agent or to the company.

There are many life settlement agents and firms that provide this service to retired senior citizens. However, there are some basic criterions that need to be fulfilled. The person who wants t sell off his or her life insurance policy needs to be of the age of sixty two years or more and should have a life expectancy of thirteen years minimum. Once you sell off the insurance policy, the money at the maturity of the policy goes to the person who has bought the policy from you. Therefore, stop worrying now and take the help of this policy to meet all your requirements.

William Regal is an expert in dealing with life settlement. If you have any queries about Life settlement life settlement broker, life settlement information, qualified life settlement.

Life is short and money is tight for everyone these days. Even celebrities have to make ends meet. These famous folk understand that their fortunes won’t last forever. They’re also smart enough to know that they’ll need to plan for their financial futures. If they wait until they’re retired and need elder care, they may not have enough time to save up a decent nest egg. Fortunately, there are senior life settlements. This is a great way for the rich and famous to leave a legacy for their future selves and their families. If you’re wondering what these are, keep reading.

What Is a Senior Life Settlement?

A senior life settlement is a contract you sign with your future selves. It’s a contract that lets you sell your life insurance policies and collect a guaranteed amount now. This guaranteed amount is what makes senior life settlements so lucrative.

With a standard life insurance policy, you’re only guaranteed to get back a portion of what you paid in. This is because a large portion of the premium you paid is the insurance company’s profit. A senior life settlement, on the other hand, is guaranteed to make you money.

What Does a Senior Life Settlement Include?

According to legal experts, every senior life settlement is different, but they usually include the following:

• The death of the seller (the person who signs the contract) will trigger the payment.
• The death benefit usually equals the face value of the mortgage on the seller’s property.
• The insurance company will pay the death benefit only if the seller dies during the term of the contract.
• The insurance company will pay the death benefit only if the seller dies during the term of the contract. A substantial upfront premium.

Why Are the Rich and Famous Investing in Senior Life Settlements?

There are a few reasons the rich and famous are investing in senior life settlements. Let’s take a look at a few examples.

• Wealth Protection - One of the main reasons the rich and famous are investing in senior life settlements is for wealth protection. You’re essentially locking in a guaranteed return on your money. This protects your assets and keeps you from having to transact as frequently as possible.
• Guaranteed Payouts - Another reason the rich and famous are investing in senior life settlements is because they guarantee a payout. If you sell your home for, say, $1 million, the insurance company will pay you the $1 million even if you die during the term of your contract. This is known as a death benefit.

How to Invest in a Senior Life Settlement

There are a few ways to go about investing in a senior life settlement. You can either buy a contract on your own or find a broker that specializes in this type of contract.

If you want to buy a contract on your own, you can visit any insurance company or look online. Be sure to shop around to find the best price. You can also use an online broker like TD Ameritrade that specializes in buying insurance contracts.

If you want to find a broker that specializes in senior life settlements, visit a brokerage like E-Trade. They have an extensive list of brokers that can assist you in all types of financial products.

Which Celebrities Are Investing in Senior Life Settlements?

Several celebrities have invested in senior life settlements, including:

• Melissa Etheridge
• Joan Rivers
• Eva Longoria
• Nicole Scherzinger
• Whitney Houston

Final Words

Senior life settlements are a great way for the rich and famous to provide for their future selves and their families. These contracts guarantee a certain amount to the insurance company in exchange for a fixed premium. If you’re wondering what these are, consider buying one today. You may be surprised by how lucrative these contracts can be.

Investing in life settlement will let you a chance to escape out from the burden of heavy premiums. The eligibility for investing in life settlement policies are very similar to any other policy's terms and regulation including age limit and necessary documents. This is an option through which the policies can be used to resolve monetary issues. The firms offer numerous advantageous prospects to the senior citizen that allows them cash their life insurance. Now you do not have to sell your policy to the insurance company, but can make profits through the services provided by these brokerage firms. You must keep the fact in mind that, life insurance policies are beneficial only after a certain period of time.

People often invest their money into various schemes and financial plans. Generally there are two main motives behind this act, either securing the money for future use or to earn some profit that is again a step for securing future. Life is very unpredictable, so mostly people find it sensible to get insured for life. So that if ever life shows hard time the insurance can fetch some financial relief at least. Hence buying such policies is always a wise decision. As people are getting more conscious and alert about their future, many financial companies are introducing arrangements for Investing in life settlement schemes that can be super beneficial for people.

Such issues can solved if seniors by making an investment in life settlement. Through this they can get enough financial help to support their basic requirements. It is the financial transaction process that is settled between investor and policy holder. Indirect participation of the company is also allowed to give assistance in managing the regular requirements. People who understand the value of securing life will find investing in life settlement quite a beneficial deal. The investor can relax with useful monetary benefits and can even enjoy the advantages just like the policyholder. Before selling out your policy, confirm that whether it has the provision for reselling or not because it is illegal to sell a policy that is not meant to be sold again. However, you can then use the option of rescheduling you policy, so that it does not collapse.

William Regal is an expert in dealing with life settlement. If you have any queries about life settlement,life settlement broker, Investing in life settlement, qualified life settlement.

The cost of life insurance has changed drastically. The coupling of longer life expectancies and lower morbidity tables has resulted in some of the lowest premiums in recent history. It is a fact that seniors are living longer, and insurance costs have been adjusted accordingly. What this means is that many current life insurance polices have become inefficient or outdated when compared to new issues that could be providing larger benefits with less premium. Life settlements are becoming increasing popular as a exit strategy for seniors looking to shift or lapse their coverage.

Life settlements are the transfer of ownership, beneficiary, and all future premium to a third party investor in exchange for a cash settlement. This system provides more that the cash surrender value of whole and universal life policies, but functions no differently than a 1035 exchange. For the seller, the only difference they experience is a much higher dollar amount for ending the coverage. One really exciting prospect with a life settlement is the ability to receive a settlement for a term policy that is going to be lapsed or ended. Term life insurance, normally though of to have no cash value, can be sold for a substantial percentage of the face amount, instead of lapsing the coverage for a total loss.

Most people who are hesitant to look into a life settlement are concerned about the impact on their inheritance. According to experts, Most people who buy life insurance have other family members or interests in mind while they struggle with the overbearing cost of large life insurance policy. However, the new ease of being reissued a much more manageable policy that will still cover their beneficiaries' interests, and the possibility of receiving a substantial dollar amount on their current policy to use in enriching their own lives, is why the life settlement industry has doubled in the last three years. Trinity Financial Services can provide more information on how the Life Settlement process works and evaluate on your current insurance situation.

However, consumers often are unaware of their options when selling their structured settlements. What price is too low? Which company is reliable? Can I sell just part of my settlement? These are just some of the many questions that arise when considering selling your structured settlement. Torre recommends doing thorough research ahead of time. He offers these 5 tips to consider before selling a structured settlement:

1. Search for specialty finance companies that are able to purchase your structured settlement. Be sure to research their reputation and testimonials - what clients (past and current) say is invaluable.

2. Torre recommends not accepting the first offer to purchase your policy. Why? Browse multiple companies to make sure you're getting the most value for your settlement.

3. Evaluate your current financial standings, and then decide whether you need to sell all or part of your structured settlement.

4. If you can't understand the legal jargon, consult an attorney. Make sure you understand the documents and any tax ramifications that occur with liquidating your structured settlement.

5. Evaluate your financial obligations that will accrue in the future. Re-consider whether selling all or part of your structured settlement will be beneficial for you. Also, consider how accessing your assets will affect your income.

Bonus: Additionally, before you sell your structured settlement, be sure that the company you've chosen addresses all legal ramifications, Torre adds.

J.G. Wentworth is the nation's oldest, largest and most respected buyer of deferred payments for illiquid financial assets such as structured settlements, annuity payments and life insurance policies. Since 1992, J.G. Wentworth has purchased over $3 billion of future payment obligations. J.G. Wentworth is based in Bryn Mawr, PA. For more information about J.G. Wentworth, visit jgwentworth.com

There are several types of structured settlements with each being designed to suit the individual's financial needs. Typically, they are offered when damages exceed $10,000. In the case of a minor child, damages must exceed $5,000. Annuity payments are paid to the recipient (Annuitant) over a specific period of time.

Depending on the circumstances and amount of monetary award, Annuitant's might receive payments over the course of 10 to 20 years or for their entire lifetime. Much depends on the type and duration of medical care required, as well as living expenses.

Structured settlements are also arranged to compensate individual's who win jackpot lotteries. For instance, if someone wins $5 million, they can elect to take a lump sum payment or receive the money over a period of years. By accepting a lump sum payment, they will receive a lesser amount than if they elect to accept a structured settlement.

Similar to Certificate of Deposits (CDs) sold by banks, structured settlements are backed by an annuity held by a life insurance company. Annuities are invested to expand the Annuitant's financial portfolio. When annuity payments are paid as a result of injury or negligence, they are tax free. When they are paid for lottery winnings, they might be subject to taxation of both state and federal levels. Additionally, investment proceeds are subject to both state and federal taxes.

When structured settlements are paid for a specific period of time, they are referred to as "Designated Period" or "Period Certain Annuities." The Annuitant receives a set amount of money at a specific time for a certain number of years. Should the Annuitant die before the structured settlement is paid in full, the balance will be paid to a designated beneficiary.

In cases where annuity payments are paid for life, they are referred to as Life Annuity structured settlements. It's important to note that "life" may actually refer to a certain number of years based on the Annuitant's life expectancy. Also known as "Period Certain", this type of structured settlement allows the Annuitant to name a beneficiary. If the recipient dies prior to the number of designated years, the beneficiary will receive the remaining payments.

Lump Sum structured settlements provide a lump sum payment at a future date. This type of arrangement is well-suited for minor children, as it can provide for future educational expenses. Two types of lump sum are available -- "Lump Sum" and "Life Contingent Lump Sum." The first allows transfer of the annuity to a designated beneficiary, while the second does not.

Life Annuities structured settlements pay monthly annuities for life. There are two types of life annuities -- "Life Only" and "Joint Survivor." The first offers no provision for assigning a beneficiary, while the second will pay the beneficiary for the remainder of their life.

Last, but least, is Temporary Life Annuity structured settlement which pays regular payments for a specific number of years. There is no beneficiary provision and the annuity ends when the recipient dies.

check out more resources on law and attorney at ProLawGuide.com.

What of business life insurance, is this policy intended to fund a "buy sell" agreement or is it for key person insurance.

Regardless of the purpose, the life insurance settlement option you decide on is an important decision and is worth your thought and consideration.

Here are the options you have.

You can have the proceeds paid out in one Lump Sum. This is an advantage if the need is a lump sum need, like last expenses etc. This can be wrong option if the intent is to secure the family until the children finish school. It is better to use an income option to fulfill this need.

The proceeds of the life insurance policy can be paid in the form of a Life Income. Let us take a situation where your desire is is to have sufficient income paid to your spouse for the rest of her life, the Life Income Option is ideal. Incidentally, there are several Life Income Options.

According to legal professionals, when setting up your pension you can arrange with the insurance company to pay out the income until the last person named dies. This is referred to as the Joint And Last Survivor Settlement Option. Usually used for married couples.

Another life insurance settlement option is the Interest Income Option. You say to the insurance company, pay me the interest each month and keep my principal intact. I like this option especially when the principal is sufficient to provide a decent monthly income.

Another option is the Fixed Period Income Option. You say to the life insurance company, pay me whatever income the lump sum will provide over the next seven years, for example. The insurance company will do exactly that. Let us say you have a youngster about to enter medical school, you want to use this income to guarantee that the funds are available to take care of these costs, this would be a good life insurance settlement option to use for this.

The Fixed Amount Option is similar to the fixed period option as far as the end result is concerned. In this case, however, you decide on the amount of income you desire each month.

My method is to take the utmost trouble to find the right thing to say, and then to say it with the utmost levity. 

One option for people to consider for their unneeded life insurance policy is to sell it to a bank or other third party in the form of a "life settlement". Also known as senior settlements, a life settlement provides the original owner of a life insurance policy with a percentage of the death benefits that were to have been paid out upon their death. Many people choose this option because the cash value of a life settlement generally exceeds the surrender value that would have been paid by the life insurance policy. These lump sum insurance payments are often used by people to strengthen their retirement funds or to just provide them with some liquid cash to spend as they choose.

But if you are considering a life settlement as an option for your life insurance policy, you may want to think about establishing a "legacy" donation. You can use life settlements to establish legacy donations and in the process give your favorite charity some much needed funding and feel much better about yourself knowing that you have done your part to make the world a brighter place. There are some other benefits to converting your senior settlement into a legacy donation that are worth considering.

Anyone can use the proceeds of their life settlement to establish a legacy donation and in the process gain a significant tax deduction in the process. This tax deduction would certainly exceed the surrender value of the life insurance policy and therefore put the proceeds from the life settlement to good use on two fronts. The charity and the people it benefits gain funding to continue their efforts while you can both feel better about yourself and gain a substantial tax deduction in the process.

Life settlements are a great option to consider for people with unneeded life insurance policies. Not only do they convert your life insurance policy into a lump sum insurance settlement and therefore put a lot of liquid assets at your disposal, they often exceed the surrender value offered by the issuing company. A legacy donation is a very noble and logical way to use the proceeds from a life settlement to bring some hope into the world while giving you a significant tax deduction in the process. Using your life settlement to establish a legacy donation is a win-win situation for you and the charity of your choice and should be considered a viable option for your unneeded life insurance policy.

Find more information about life settlements at Senior Life Settlements and Elder Care Services.

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 Settlement proceeds are tax-free up to the cost basis (premiums paid since policy inception). They are taxed as ordinary income from basis to cash surrender value and proceeds above the cash surrender value are taxed as capital gains.

Once the Life Settlement change of ownership has been recorded with the insurance company and the policyholder has received their money, the Life Settlement funding source will continue to pay premiums throughout the life of the insured. All types of life insurance qualify including group, term, whole-life, universal, survivorship and key-man policies.

Grant Shellhammer is located in sunny Orlando, FL. He is a licensed insurance agent and affliate Life Settlement Broker with Life Settlement Pro. He works with senior citizens and financial professionals nationwide to receive the highest available offers for their life insurance policies.

Individual: cash-need for major expenses, outlived need for coverage, needing different coverage or features, financial distress

Family / Estate: Change in beneficiaries (e.g., divorce, death of dependents), Second-to-die policyholder (i.e., spouse) has passed away, material change in the value of estate

Business: Change in key executives / partners, change in succession plan (e.g., family business) or needing cash / seeking to monetize assets

(Source: Bernstein Research Call, Sanford C. Bernstein & Co., LLC, a subsidiary of Alliance Capital Management, 2005)

Other sources (Milestone Settlements, 2004) confirm that senior life settlements appeal as solutions to individuals most likely to consider a life settlement, because they, for one reason or another, no longer need the insurance they purchased. A number of reasons may include:

* Seniors whom have insurance and/or estate needs that have changed, making their current policy(s) inadequate or exceedingly adequate for their current or future needs

* Seniors who are not satisfied with the performance of the insurance product(s) they have chosen, or are aware of newer, better performing insurance products

* Seniors who choose to realize the value of their policy(s) now, rather than continuing to pay on a policy they will never receive the benefits of

* Individuals, or owners of a company, who own key man policies that are no longer needed, or elect to use the sale of the policy(s) to enhance a buy-out or create severance packages

* Seniors who wish to live out the remaining years of life without a change in lifestyle

* Individuals who need capital to pay for medical treatments or procedures

* Any senior who realizes that there is now a greater tangible asset value to their life insurance policy, and wishes to take advantage of this added value

A cautionary note seems appropriate here. Senior Life Settlements is definitely not territory to approach without the advice and assistance, counsel and due diligence of a well-versed, experienced player in this secondary market. A financial advisor with exposure and experience could advise you and assist you in become aware of any tax liabilities you may face should you sell your policy. Most times a life settlement is taxed on the income above and beyond the basis (what you've paid into your policy to date) of your policy. Each senior life settlement case is different and if seems prudent to have a consultation with a tax advisor or your financial planner prior to proceeding down the path of Senior Life Settlements.

What is a Life Settlement? A Life Settlement is the sale of an existing life insurance policy for a lump sum of cash that is more than the cash surrender value. A life insurance policy is property, like a car, house, stocks and bonds that can be legally sold in accordance with applicable laws. Through a Life Settlement, a policy owner can realize value today from an asset that is generally thought to only have a benefit when the insured passes away.

How can Life Settlements be used in Fundraising? There are many variations and complex estate and tax planning strategies that can be employed when utilizing Life Settlements in a planned giving program. However, in its simplest terms, a Donor who owns a life insurance policy gives the policy to the philanthropic organization that in turn immediately sells the policy for a lump sum of cash through a Life Settlement.

In order for a policy to be eligible for a life settlement, it must meet the following criteria:

Insuring an individual over age sixty-five (65) or with a serious illness

With a face value of at least $100,000

Issued over two (2) years ago Donor Benefits: Making a donation to his/her favorite philanthropic organization without depleting cash reserves or losing income-producing assets;

Getting a tax deduction for the fair market value (selling price) of the life insurance policy instead of only the cash surrender value;

Being able to see their donation put to use during their lifetime rather than after their death if the organization did not utilize a Life Settlement;

Eliminating the requirement of continued premium payments on the policy;

Removing a taxable asset from their estate if the policy was individually held. Organization Benefits: Receive a donation from a Donor who may not have otherwise been in a position to contribute at all;

Collect a lump sum of cash today instead of having to wait for the insured’s death to collect the proceeds;

Not having the financial burden of paying premium payments to keep the policy in force;

Providing a valuable option to the Donor that furthers their tax and estate planning objectives and invites the opportunity for future/additional gifts.

Improved annual budget forecasting ability How Does a Life Settlement Work?

Once the Donor is considering gifting a life insurance policy to the organization, the life insurance policy should be appraised. Typically, a Life Settlement Broker can determine its eligibility for a life settlement and will undertake it to obtain the highest offer for the policy.

The value of a life insurance policy is determined by a number of factors, including, but not limited to, the age and medical condition of the insured, type of insurance policy, rating of the issuing insurance company and amount of premium payments to keep the life insurance policy in force. Most types of insurance policies can qualify, including universal, whole life, and converted term. When a mutually agreed upon price is determined for the life insurance policy, the organization that now owns the policy is paid a lump sum in cash, the ownership and beneficiary rights are transferred to the purchaser. All future premium payments are the responsibility of the purchaser and upon the death of the insured, the death benefit is payable to the purchaser. The cash proceeds from the Life Settlement may be used by the organization in any way – there are no restrictions regarding the use of the funds. The money may be invested or spent on current projects. Because some Life Settlement Brokers offer fundraising support, it makes sense for organizations to partner with them for their expertise.

Life Settlement Regulations

As of June, 2003, eighteen (18) states have enacted statutes addressing the sale of life insurance policies insuring non-terminally or chronically ill individuals and an additional seventeen (17) states have laws that only regulate the sale of life insurance policies insuring terminally or chronically ill individuals. Fifteen (15) states do not regulate the transaction at all.

Donated Life Insurance Policies

In addition, most philanthropic organizations currently own life insurance policies that have been donated in the past. If there is a need for funds sooner rather than later or if the premium payments are becoming burdensome, the organization can utilize Life Settlement transactions to sell those policies for lump sums of cash and put the money to work right away.

Life Settlements are powerful arrows in the quivers of professional fundraisers –

Generating money for their organizations by encouraging current gifting of life insurance policies

Turning already donated life insurance policies into cash.

Sound investment practices require diligence and regular appraisal and valuation of assets. To date insurance policies were excluded from said valuations, due to the perceived absence of market for them. However, the landscape, opportunity and choices open to seniors, retirees etc. faced with a life settlement issue has changed significantly and people are taking notice.

The premise and principles seem to be simple and back to basics. Simply put, it means that life settlements offer qualifying life insurance policy owners the opportunity to sell policies that are no longer no longer adequately serving purpose or unnecessary, receiving significantly more than cash value for them in return. An interesting statistic from the context of senior life settlement (Conning & Company), states that as much as twenty percent of all insured over the age of 65 own policies with a market value exceeding surrender value.

A Senior Life Settlement may make sense for a variety of reasons:

• Premiums may be too expensive • There been a sudden change in your health condition • Your life insurance policy about to lapse shortly • You have significantly more life insurance coverage than you need • You would like to receive substantially more than the policy surrender value

Qualifying Policies Often Include:

• Joint Survivorship • Whole Life • Universal Life • Variable Life • Group Life • Term Life

A Senior Life Settlement offers consumers the empowerment to make better financial planning decisions. A case example is quoted here to throw light on how senior life settlement could benefit a life insurance policy holder: Consider the case of a seventy-four year old female with a $10 million term policy. The annual premiums in excess of $300,000 no longer fit her financial plan so she planned to let the policy lapse. A financial advisor suggested an appraisal, which yielded two options: a $660,000 life settlement of a $3.5 million Settlement With A Paid-Up Policy (SWAPP). Instead of surrendering the policy for no value, the client chose the paid-up policy, eliminating her premium payments while addressing her estate planning needs.

In a recently published (March 4, 2005), Bernstein Research Call, an industry-accepted market forecasting tool and indicator to professionals in the financial advisor sector, it is stated that the Senior Life Settlement business, an emerging secondary market for life insurance, will grow more than ten-fold to $160 billion over the next several years.

This so-called free market referred to as the life insurance industry's secondary market is based on a central premise, namely that the value of life insurance is best determined by independent market forces and has been validated in recent years by its rapid growth. It is also amazing to see the value creation and opportunities that this market presents. What it a life settlement and why may it be an attractive financial alternative to policy holders?

Various market providers in this sector of the industry are focused on servicing viatical settlements, life settlements, and senior settlements. Maximizing the profitable offering price for your life insurance policy in what is commonly referred to the secondary market for life insurance. Quite innovative, albeit counter-intuitive, advocating looking at things from a totally different perspective and finding new value in life insurance

Life insurance provides financial solutions to meet various needs of businesses and families. Over time, however it also needs to be dynamic and change with the holders and the/their demands. For example as loans are repaid , key executives retire, estates become smaller, businesses are sold, estate taxes are reduced - or better yet, no longer exist of in cases where the policy simply becomes too expensive it is definitely time to revisit said policy.

Until just several years ago, individuals in the situations laid out about above were facing a monopoly, a market situation in which a seller can only sell to one buyer. Imagine if a homeowner, after living in the home for many years, was told that instead of being permitted to sell the home to any willing buyer, he or she could only sell it back to the original builder at the price determined by the builder. Clearly, no one would tolerate such a situation for homeowners, but it has existed for life insurance policy owners. For many years, policy owners have had only one buyer for their policies - the life insurers. The advent of a secondary market has lessened the monopoly power of life insurers and created a free market for policy owners to create value from and using their insurance.

Before the advent of the secondary market, life insurance policies could not readily be sold, and it would have made little sense to speak of a policy's fair market value. By its very existence, this new and growing secondary market for life insurance bestows on every policy a fair market value like the owner's other financial assets. A life settlement can now be treated like any other financial vehicle.

A life insurance settlement, (also referred to as a senior life settlement or life settlement) is a financial transaction in which a senior citizen possessing an unneeded or unwanted life insurance policy sells the policy to a third party, as opposed to surrendering or lapsing it back to the life insurance company. The seller receives immediate cash for the policy from the purchaser. The purchaser becomes the new beneficiary of the policy at maturation and is responsible for all premium payments from the time of the purchase until the seller passes away.

For senior citizens to receive an estimate on the amount available to them, they simply need to sign a release and provide information about the policy, in situations such as injury, there is no need for a physical or medical visit. "The life settlement process is a very simply process," says Grant Shellhammer of Life Settlement Pro, "Once the necessary documents are received we can provide an estimate of the settlement amount, there is never any obligation or cost to the client." With life insurance policies being surrendered and lapsed on a daily basis, it is important for consumers to understand how beneficial a life settlement can be.

According to legal experts, there is no standard amount available through a life settlement and every individual case is different. The industry has seen anywhere from 2-10 times the case surrender value available through a life settlement. Many seniors are not aware that there is potentially a lot more value in their policies.

The education and availability of life settlements could also be blamed on the agents and financial professionals. They have a duty to provide their clients with the best options and recommendations. By letting a policy lapse or surrender without seeing if a life settlement is available is not servicing your clients correctly. "We gladly work with agents and financial professionals across the nation to help them assist their client with life settlements," stated Grant Shellhammer.

No longer should you just settle for a cash surrender payout; find out if a life insurance settlement can pay you more.