At its most basic level, the Life Settlement transaction is quite simple - selling a life policy for an amount greater than the surrender value or for a price that is material to the consumer's needs.

• Premiums too costly
• Beneficiaries no longer living
• No longer a need for life insurance proceeds'

• Policy owner has long-term care, or other medical needs
• Policy owner wants to meet assisted living care expenses
• Policy owner has an emergency need
• Policy owner wants to eliminate debts

• Policy owner wishes to make gifts to family members while still living
• Policy owner wishes to make gifts to charities
• Policy owner wishes to make other investments
• Policy owner wishes to purchase a vacation or retirement home
• Policy owner simply wishes to use the funds for other purposes (vacations, etc.)

• Business has been sold or liquidated or is up for sale
• Insured no longer a "key" employee involved in day-to-day running of business
• Policy is no longer needed to fund deferred compensation packages, same concern as above.
• Policy owner may require funds to buy out partner's interest

• Estate tax laws have changed
• Estate has become more liquid
• Estate has become less liquid
• Other insurance options more in line with estate's long-range goals