Life settlements can be a complicated industry to understand for those new to the practice. However, the number of life insurance policies nationwide continues to grow year after year. According to PolicyGenius, about 54% of Americans are currently holding policies. For this reason, it’s important to understand what your options are pertaining to life settlements and how to explain it to a family member or loved one without a policy.
On the surface, life insurance seems like a straightforward type of insurance policy. But could it be a financial asset? That depends on the type of life insurance policy, as well as your perspective. Some types of life insurance, as well as several other insurance types with cash value components, count as assets. This should be kept in mind for many events, such as divorce and other legal proceedings, but also because they may aid you in obtaining financial security when and if it is ever necessary.
