: Payouts are often subject to federal and state taxes.

: Verify the health status of the insured through third-party medical reviews.

: You pay the policy premiums until the insured passes away.

: Funds are held in escrow until the insurance company confirms the change of ownership.

Buying a life settlement means purchasing an existing life insurance policy from the original owner for more than its cash surrender value but less than the total death benefit. The Opportunity

: Most individuals buy through a Life Settlement Provider or a Licensed Broker .

💡 : Always work with a licensed broker to ensure the transaction complies with state regulations. To help you move forward, Learn about the tax implications for investors? Understand how life expectancy is calculated?