How to receive a life settlement proceeds

Basically, there are two main ways to receive life settlements proceeds. In the example for Mr. Smith, he received the $65,000 lump sum and can use the proceeds for whatever he would like. Another way to receive proceeds is through a Retained Death Benefit option. In this type of sale, Mr. Smith could have taken a lesser amount upfront, (perhaps $25,000) and kept some of the death benefits, (perhaps $75,000) that would go to a beneficiary of his choosing and without any premium obligations. This option is not always available but is an interesting strategy to consider.