Insurance settlement loans

Insurance settlement loans are usually applicable in cases where a plaintiff is awaiting an insurance settlement for some personal injury or loss. The recipient may have to wait several years before the claim actually materializes into hard cash. Loans to tide the claimant over are generally obtainable.

The term insurance settlement loan is sometimes associated with the practice of turning eventual life insurance settlements into real and present money. This is also known as life settlement – a practice where a financing company actually buys the death benefits of an insured person’s life insurance policy.

Once this is done. The full value of the life insurance will not be given to the beneficiary. This is because the only way that the insurance settlement company makes their money is by buying at a lower rate now but collecting big later.