A life settlement is a financial transaction wherein a policyholder sells their existing life insurance policy to a third party in exchange for a lump sum cash payment. The purchaser (Abbistar) becomes the new policy beneficiary responsible for future premium payments. The amount paid to the policyholder is generally 4X higher or more than the cash surrender value but less than the death benefit.
Eligibility criteria can vary among life settlement providers and may be subject to state regulations. You may be eligible to sell your life insurance policy to Abbistar if:
- You’re aged 65 or older.
- You have an active policy with a death
- benefit of at least $100,000.
- You’ve held your current policy for at least 2 years.
- You’ve had a change in health.
Life insurance settlement payouts may be subject to both federal and state taxes. Tax rules differ in each state, and some settlements could qualify for tax-exempt status. Our licensed experts at Abbistar can help you understand the specific tax implications for your situation. Schedule a consultation today.
Various factors, including your age, health status, the face value of your policy and prevailing market conditions influence your life insurance policy’s worth. Generally, a life settlement is 4X higher or more than the cash surrender value but less than the death benefit value.
Once your policy is sold, all rights and ownership are transferred to Abbistar. We will be responsible for all future premium payments until the policy matures. Subsequently, we will receive the death benefit when the insured event (death) occurs.