Life Settlements Industry and Practices Quiz

Life settlement involves selling a life insurance policy to a third party.

Seniors who don't need life insurance coverage often sell their policies in life settlements.

Typically, the insured individual needs to be at least 60 years old for a life settlement.

The policy's cash surrender value affects the value of a life insurance policy in a life settlement.

A life settlement provider is a company that facilitates life settlement transactions.

The main benefit for a policyholder in a life settlement is access to cash.

The primary reason for selling a life insurance policy in a life settlement is to receive a lump sum payment.

NAIC oversees the life settlements industry in the United States.

Insurance agent is not involved in a life settlement transaction.

Investors in life settlements gain their return from the death benefit upon the insured's passing.

The primary difference lies in the health condition of the insured individual.

Policyholder default poses a potential risk for investors in the life settlements market.

Viatical settlement involves terminally ill individuals.

The process of determining the value of a life insurance policy in a life settlement is called valuation.

The process of transferring ownership in a life settlement is called assignment.