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What is a Life Settlement? - Definition & Benefits

Instructions:

Choose an answer and hit 'next'. You will receive your score and answers at the end.

question 1 of 3

What is the amount of the lump-sum payment that an insured receives in a life settlement?

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1. Which of the following characteristics about life settlements is INCORRECT?

2. Which of the following is NOT an advantage for the seller of a life settlement?

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About This Quiz & Worksheet

This quiz and its attached worksheet will help you find out what you know about life settlements. Answer questions about how these work as well as some costs and benefits of them.

Quiz & Worksheet Goals

In this set of questions you'll measure your knowledge of:

  • Payments issued in a life settlement
  • Characteristics of life settlements
  • Advantages to the seller of a life settlement

Skills Practiced

  • Reading comprehension - ensure that you draw the most important information from the lesson, such as the profit earned by the buyer in a life settlement
  • Information recall - access the knowledge you've gained regarding how policy ownership works after a life settlement is paid
  • Knowledge application - use your knowledge to answer questions about the characteristics of and benefits to a seller of a life settlement

Additional Learning

For more information about this type of financial transaction, read the lesson titled What is a Life Settlement? - Definition & Benefits. You will learn about:

  • Premium payments after a life settlement
  • Potential risks to the policyholder and purchaser of the policy
  • Cash surrender values in a life insurance policy
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