Many different reasons can compel a person to seek life insurance cash settlement including needing money to pay for costly medical care and also being unable to afford paying premiums of existing life insurance policy, even if you thought it was affordable life insurance when you got it. In addition, it could also be on account of bad performance of the current policy. There are also in fact companies that deal only with life insurance cash settlement and they are the ones that will buy up your life insurance policy and give you back a specific amount on your policy amount by way of settlement.

Under normal circumstances, only upon the demise of the policyholder the life insurance policy takes effect. However, if the policyholder chooses a life insurance settlement then it is possible for them to materialize their policy’s value while they are still alive and breathing. As far as the life insurance settlement goes there are many types to choose from including the viatical life settlement and senior life settlement.

A life insurance policyholder that is in desperate need of ready cash is the most likely person to ask for life insurance cash settlement. As in where they have to have emergency health treatment for example, when they didn’t manage to find any cheap health insurance. Also, people that own life insurance policies and who need money to make investments too are likely to opt for life insurance cash settlements. Yet another reason to go in for life insurance cash settlement is because people wish to give their heirs their inheritance money before their own demise and so will try and sell their life insurance policies for cash.

When planning your estate using lifetime life insurance settlement can prove to be a good option, especially if you are senior citizens who want to get rid of unwanted life insurance policies by lapsing them, canceling them or even surrendering them against a surrender value.

With the practice of making life insurance settlements becoming increasingly more popular a virtual industry has been spawned and secondary and new market has grown that deals in just this aspect of life insurance, and is quite distinct from other types of insurance like renters insurance.

Senior life insurance settlement is a special kind of life insurance settlement that allows senior citizens to sell their life insurance policies to someone else and allows them to avail of their death benefits prior to their life insurance policy maturing and also before they pass away.

Sometimes, two or more people may lay claim to being beneficiaries and will each demand settlement on life insurance policy; in such cases, it is left up to the courts to decide which person or persons are the real beneficiaries.