Life Insurance Is a Life Insurance Settlement the Right Choice for You? There is no doubt that life insurance can be an important purchase. The problem is that life insurance is one purchase that cannot be enjoyed by the purchases. After all, a term life insurance policy only pays off when the policyholder has shuffled off the mortal coil. There are whole life policies that act as investments as well as insurance, but they can be expensive options for many families. There are however some unique and innovative ways for holders of life insurance policies to benefit from their coverage while they are still alive. Viatical settlements have long been used to provide cash to those with life threatening illnesses by purchasing the proceeds of their life insurance, and the so called “life settlement” is an enhancement of that model. Unlike a traditional viatical settlement a life settlement is typically offered to insured persons who do not have a life threatening or life limiting illness. As with a traditional viatical settlement, the life settlement provides cash to the policyholder for the sale of the policy and its proceeds to the investor. While the market for these new life settlements has been growing, it is important for seniors and others to shop around carefully. It is also important to be sure that the life settlement is really the right choice. In many cases there may be more attractive options available, including home equity loans, reverse mortgages and annuity programs. It is important to explore all of the options in order to ensure that the life settlement is truly the best choice available. If the life settlement is truly the best choice for you it is important to shop around for the best possible deal. The lump sum payments offered for by life settlement investors can vary quite widely, even for policies with the same face value. As with any financial decision it is vital for insured individuals to shop around as much as possible in order to get the highest possible payout from that life insurance coverage.