What is a life settlement?
A Life settlement is when you sell an insurance policy to an investor in exchange for a cash settlement. The policy is then transferred to the investor who pays the remaining premiums and collects the death benefit upon the insureds death.
Lapse vs. Sale
are you a senior who allowed your life insurance policy to lapse?
Instead of lapsing your life insurance policy because it is no longer affordable or needed, did your insurance company, agent, or broker suggest selling all or part of it? Did they tell you that life settlement was an option? If not, you should speak with an attorney to see if you have a case.
Why? Rather than surrender your life insurance policy for a fraction of its value or lapsing it for no value, there may be investors willing to buy it for significantly more money -- and a court might find that the insurance company, agent, and/or broker had a duty to disclose those facts to you.
Was your policy validly lapsed?
To lapse a policy for non-payment of premiums, the insurance company must comply with the terms of the insurance contract and applicable state statues. If you've lost your life insurance coverage through lateness, non-payment, or other inadvertent procedural reason, we can defend your right to restore that policy coverage.
What is Stoli?
stranger-originated life insurance or "STOLI" is an act, practice, or arrangement to initiate the issuance of a life insurance policy for the benefit of a third-party investor who, at the time of policy origination, has no insurable interest (someone who is a stranger to the insured who no pre-existing family or business connection) in the life of the insured. The typical insured in a STOLI transaction is between the ages of 70-85 years old.