Life Settlement Company

In general a life settlement company is an entity whose purpose is to purchase life insurance policies. Upon the purchase, the company becomes the contractual owner and beneficiary of the policy. The life settlement company, then, will be required to pay the ongoing premium payments of the policy.

The original owner of the policy has the right to sell or transfer a policy in this manner as long as a terminal illness does not exist. If the insured and the policy owner are two separate people, both must agree to the sale.

A life settlement broker and life settlement agent, on the other hand, represents the original owner of the policy. On behalf of the seller, the life settlement broker or life settlement agent negotiates the best offer on the policy.

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