Life Settlements are one of the fastest growing financial planning tools in the senior market. The financial planning industry is quickly recognizing the importance of this new option for seniors, who now have a more profitable alternative to policy lapses, cancellations and surrenders. Chesapeake Financial Settlements, LLC can produce immediate liquidity from a non-performing asset and allow policy owners to cash out of unwanted, unaffordable or obsolete life insurance policies.

Chesapeake's expertise in the secondary market can assist advisors in improving their client’s welfare by identifying opportunities to tap previously unidentified value and planning opportunities presented by unneeded, unaffordable or under performing life insurance assets. Our strategic relationship with dozens of institutional funding sources allows us to create a competitive marketplace that insures that the highest value is received for the client’s policy.

more about selling your life settlement policy

The business of selling existing life insurance policies is not a completely new idea. The first instances of these transactions can actually be traced back to England in the middle nineteenth century. However, it was not until the 1980’s with the onset of the epidemic rise in AIDS cases that the practice of selling existing life insurance policies emerged in the modern marketplace.

The sale of life insurance policies by these terminally-ill patients became known as viatical settlements. Since then, viatical life settlements have been defined and regulated as the sale of an inforce life insurance policy insuring a person who is terminally or chronically ill. The Internal Revenue Code deems a personally terminally ill if he or she is certified by a physician as having an illness or physical condition that can be reasonably expected to result in death within 24 months. A qualifying viatical settlement should result in a cash offer between 50% and 80% of the policy death benefit and will receive the same income tax free treatment as if the insured died.

Life insurance settlements, on the other hand, are generally pursued for financial planning and economic policy restructuring reasons. The life insurance settlement cash offer will be a lower percentage of the policy death benefit based on the life expectancy that can range from 25 to 180 months (2 to 15 years). The tax treatment of life settlements has not been defined by the Internal Revenue Service.

It is important for policy holders and settlement financial advisors to understand the regulatory, tax, and planning differences of these two transactions that are commonly mistaken as synonymous.

more information for financial advisors

Are you a senior looking to take your unwanted or unaffordable insurance and turn it into a life settlement?

Today a senior policy holder doesn't have to let their life insurance policy lapse. Now seniors can get the cash in their life insurance policy. Because your life insurance policy is an asset it can be sold just like any other asset. It's that simple. Thanks to the power of life settlements sometimes called "senior life settlements", seniors have an excellent opportunity to turn in their current life insurance policy and receive a fair settlement. Senior Life settlements allow seniors to cash in their life insurance policy in a new way. Instead of cashing in their life insurance policy with the original issuing life insurance company, they can work with a life settlement brokerage to cash in their policy with a financial institution that will pay more than their insurance company. This is done by bringing together competing financial institutions that purchase insurance policies which in return get you the best price. Let us at Chesapeake Financial show you how you can change your unwanted policy into cash today.

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