If you’ve been paying attention to TV and radio ads lately, you’ve probably seen ads for senior life settlements. But what exactly are they? And how does a senior life settlement help you?

A senior life settlement is a deal between you and an investor. You agree to sell the rights to your life insurance policy, and, in return, an investor pays you a large sum of money for it. Then, the investor takes over the policy, pays the monthly premiums on it, and collects the payout when you die.

The amount of money that you get from the investor depends on a lot of things – like how much your insurance policy is worth, how old you are, and what kind of health you’ve got. So, for example, if you’re a senior citizen with a $500,000 life insurance policy, an investor might offer you a lump sum of $250,000 or $300,000 for it – knowing that it won’t be too long before he gets a $500,000 payout and doubles his money.

For a senior, life settlements can be a great way to get out of debt. After all, what could you do with a lump sum payment? Could you pay those medical bills that are piling up? Could you pay off your creditors so that your heirs aren’t saddled with a bunch of debts after you die? Thanks to a senior life settlement, you can use money from your life insurance policy now – while you’re still around to benefit from it.

Plus, senior life settlements free you from the burden of a monthly life insurance premium payment. If, for example, you have outlived all of your heirs, your life insurance policy is pointless to have. Or, if you’ve got lots of expenses, writing a check to your life insurance company every month can put you in a real bind. However, cancelling the policy altogether can result in heavy fees and fines – so you’re stuck with it.

Luckily, a life settlement can change all of that.

So, how do you go about entering into a senior life settlement?

There are professional life settlement brokers who can help you with that. When it comes to a life settlement, brokers act as a middle-man of sorts. They help you find an investor. Then, they can help you and the investor come to terms on a fair agreement. That way, you don’t have to worry about getting hustled by a savvy investor who knows more about the process than you do.