Life Better

The act of selling a life insurance policy is becoming all the rage these days as people look to turn their illiquid assets into cash they can use. The concept is known as a life settlement. Of course, selling your policy is only a good idea if you get a good price. In this article, we look at the factors involved in the pricing of a life insurance product when selling it.

The sale of a life insurance policy to investors, known as a life settlement, is an unregulated transaction for the most part. It is a tremendous way to turn a life insurance policy into cash now, but how do you actually price the transaction? There are a number of factors considered.

Age and Health

Generally speaking, medical disability insurance can be categorized in two main different types of insurance.

1. Private – either individual or group policies which have been bought from various companies.

Private medical disability insurance usually refers to that certain type that you bought using the services of a certain company. There are many types of private disability insurance that exist, and among them we can list:

- individual disability income policy;

- group policy;

- group association policy;

- riders which are attached to life insurance policy.

Generally, depending on exactly what type of policy you chosen, private disability policy will offer you more benefits for insured individuals than for social insurance. Disability income policies which are owned by individuals might usually offer more coverage, at a more expensive price of course, which are also followed by group policies which are being offered by a certain employer or various associations. Do a small research to see if you are eligible to participate in such a group plan, and if by any chance you are not eligible, get in touch with your broker to check for individual coverage.