When done properly, senior life settlements can be a great deal for everyone. They give you some cash to work with – so that you can do things like pay off your debts and live more comfortably – and they give smart investors a great return on their investments.

But negotiating a senior life settlement can be intimidating. If you’re thinking about entering into one, you need to understand these 3 things first:

1. Senior life settlements are getting more and more common
With the global economy more uncertain than ever, more and more people are turning to life insurance settlements. After all, policyholders are going to die at some point; death is one thing that the economy has no effect on!

That being said, you should look at your senior life settlement as a simple case of supply and demand. If you can’t find life insurance settlements that you like with one particular investor, look for another one. There is no shortage of investors looking to cash in on the senior life settlement trend!

2. Senior life settlements can fetch you more money upfront
Above all else, life settlements are an investment for the other guy. He’s betting that the money he spends on a lump sum payment to you and the monthly premiums on your life insurance policy will be far less than the payout he’s going to get when you die.

Since you’re older – and, presumably, going to fetch him a life insurance payout much sooner than someone younger and healthier – you have more leverage.

That’s why you need to work hard during your lump sum negotiations. Remember, good life settlements are an investment for you, too! Don’t allow yourself to be low-balled. By pointing out that your investor is going to collect his money sooner rather than later, you can command more in a lump sum payment. If you don’t feel like you’re getting your “fair share”, find another investor.

3. Negotiating a senior life settlement takes some research and finesse

You’re doing yourself a real disservice if you walk into negotiations for a senior life settlement “blind”. You may get far less money than you’re entitled to! Before you talk senior life settlements with anyone, you need to do some research. By understanding all of the ins and outs of the process – and the current market – you can negotiate a deal that’s fair for everyone.

If you don’t think you can go it alone, look for a life settlement broker to help you. These brokers operate as “middlemen” and can help guide you through the process.