Life Insurance or Cash Surrender Value
Life Insurance or Cash Surrender Value
From the above explanation an overview of what is life insurance settlement can be understood and now the rest of the article is going to explain some of the terms which are important to be understood in understanding the life insurance settlement.
Life Insurance or Cash Surrender Value: Cash surrender value is the amount the insurance company would be willing to pay to the owner of an insurance policy incase the owner of the policy has decided that he does not require the particular insurance policy anymore. In such a case the owner of the policy would get a cash surrender value which is much lower than the face value of the policy and even lower than the options like life insurance settlement.
Viatical Settlements: This is another option which is available to the owners of the insurance policy owners like the life insurance settlement. A viatical settlement is a process wherein the owner of the policy can sell his life insurance policy before its maturity. Viatical settlements are particularly meant for the insurance policy holders who possess a catastrophic or a life threatening disease or illness. Thus when the insurance policy is sold to the company, they would become the beneficiary of the policy on its maturity.