Considering Life Insurance Settlements When Selling Your Life Insurance Could Be...

Considering Life Insurance Settlements When Selling Your Life Insurance Could
Be A Good Option

ONTARIO, Calif., March 30 /PRNewswire/ -- Americans, no doubt have lost nearly
half of their savings. Many are looking at cutting expenses to survive the
economic downturn. Seniors, lacking the promise of living another forty years
to recover their losses, are considering cashing in their life insurance
policies to get by, says Frank N. Darras, the nation's leading disability and
long-term care insurance lawyer.

(Photo: http://www.newscom.com/cgi-bin/prnh/20070717/NYFNSC02 )

Originally, the viatical settlements industry, also known as life settlements,
was born in the 1980s in response to the AIDS crisis. Dying patients
desperately needed cash to pay for expensive treatment and sold their
policies. As AIDS became a more treatable disease, the industry expanded to
include other terminal illnesses. People suffering from cancer, heart
disease, Alzheimer's disease and other progressive illnesses, as well as
elderly people in need of funds for assisted living, found life settlements to
be a useful source of immediate cash. See www.darrasnews.com.

Darras says, "Today, the industry is booming. As life insurance premiums
remain substantial, even on policies sold 20 or 30 years ago, continuing to
pay for these policies does not have the investment return once projected.
With people living longer, life insurance for many over age 60 has become a
burdensome expense."

Life settlements offer a solution to policyholders. Here's how they work:

Instead of simply allowing a life insurance policy to lapse or taking the cash
value, a policyholder who opts for a life settlement should receive more cash
than available in the policy's surrender value. Because the true value of the
life insurance is redeemable upon death, insureds can benefit more by
realizing that value now, when they need the money and while there is a market
for their policy, says Darras.

"The dollar value an individual receives when selling his or her life
insurance policy to a company for a deep discount, is determined based their
current medical situation and on life expectancy; the shorter your life
expectancy, the higher the payout. The company or investors take over payment
of premiums and collect the full benefits when the insured dies. If you are
healthy and relatively young, the payout may not be worth the trade off," says
Darras.

"The dollar value an individual receives when selling his or her life
insurance policy to a company for a deep discount is determined based their
current medical situation and on life expectancy, the shorter your life
expectancy, the higher the payout. The company or investors take over payment
of premiums and collect the full benefits when the insured dies. If you are
healthy and relatively young, the payout may not be worth the trade off," says
Darras.

Once a life settlement is finalized, policyholders often purchase long-term
care to help supplement their health care at the end of their lives. They
also consider purchasing annuities so they receive a steady stream of income
from a specified annuity plan.

"If you are a senior, considering a life settlement, think long and hard about
how the generated funds can be best used as you plan for your future. Always
research carefully the company you are working with and know their financial
history and get sound legal advice before taking such a big step," says
Darras.

Visit www.darrasnews.com for tips on making the best choice when considering a
life settlement.

NOTE TO EDITORS: Darras available for interviews.

SOURCE Frank N. Darras

Robin Nolan, +1-650-279-9512, robin@mcdavidpr.com, for Frank N. Darras