About Life Settlements

Just like any other asset you own, your life insurance policy can be sold* to a third party for more than surrender value but less than face value (the death benefit).

As a result, you can use the proceeds for the things that are important to you, like travel, paying off debt or gifts. A life insurance policy that has been sold is referred to as a life settlement. Similar to a reverse mortgage, a life settlement can be an extremely valuable tool for seniors looking for additional financial resources in retirement.

Your Life Insurance is a Financial Asset That You Own

When you sell your policy, the purchaser becomes its owner and beneficiary and the policy remains in force. The new owner maintains the premium payments until your death and collects the death benefit. In the same way the insurance carrier did when you bought the policy, the purchaser will review your medical record to assess your current health status to estimate your life expectancy to determine a value for a policy. All things being equal, the longer your life expectancy, the lower the value of your policy.

If your policy meets the following criteria, then it may be eligible for a Perisen Life Settlement:

  • Is your policy permanent insurance, such as whole, universal or term-to-100?

  • Are you aged 70 or older?

  • Is the face value of your policy between $150,000 and $3 million?

  • Was your policy issued more than two years ago?

  • Was your policy issued in Saskatchewan, Quebec, New Brunswick or Nova Scotia?


*
Available only in Saskatchewan, Quebec, New Brunswick and Nova Scotia. If you don’t live in one of the permitted provinces, contact your local MPP or MLA to request a review of the insurance regulations in your province. 

Find out more about how a life settlement can work for you

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