If you are stuck with a life insurance policy that no longer meets your needs, you may want to consider a senior life settlement.

According to the Life Insurance Settlement Association (LISA), a life insurance policy is one of the most valuable assets many Americans will ever own. In the past, life insurance companies were the only buyers of these assets. During that time, policy holders interested in getting rid of their policies found that the only way to do so was to surrender it for cash value set by the insurance company. Today, the secondary market makes it possible for people to sell their life insurance policies through life settlements and receive three to four times the amount of the policy's cash surrender value.

Typically, the ideal candidate for a life settlement is an insured who is 70 years of age or over, has a life expectancy of less than 12 years, and has owned a life insurance policy with a face value of $250,000 or more. If you're a possible candidate for life settlements, the process typically takes four to six months to complete. The first step is to choose proper representation. Companies such as Advanced Settlements are professional brokers with years of experience in the life insurance settlements industry. Next, fill out an application and provide proper documentation, such as policy copies and medical records. After you have submitted an application, the settlement company will send the information to an independent life expectancy company for review. The settlement firm will calculate the market value for their portfolio and the policy holder will have an opportunity to accept or deny the offer. Once an offer is accepted and documents are signed and returned, there must be a change of policy ownership to the new owner. After this final step, the escrow agent will release the funds to the seller of the policy.

Sarah Michaels is a writer who resides in Cleveland, Ohio. Her work has appeared in numerous print and online publications.