Understanding Common Life Settlement Terms
Learn common terms and definitions related to life settlements, insurance policies, beneficiaries, and settlement transactions.
Beneficiary
A person or entity designated to receive benefits from a life insurance policy after the insured passes away.
Cash Surrender Value
The amount available to the policy owner if the insurance policy is voluntarily terminated before maturity.
Life Settlement
The sale of an existing life insurance policy to a third party for a lump sum cash payment.
Policy Owner
The individual or entity that owns and controls the life insurance policy.
Premium
The payment required to keep a life insurance policy active.
Settlement Provider
A company or organization that purchases life insurance policies through life settlement transactions.
Term Life Insurance
A life insurance policy that provides coverage for a specified period of time.
Universal Life Insurance
A flexible type of permanent life insurance that combines coverage with savings components.
Face Value
The death benefit amount paid to beneficiaries under the insurance policy.
Insured
The person whose life is covered by the insurance policy.