Can someone please give me some specific details and clearly explain
the differences between a structured settlement and a life settlement?

Thanks in advance!

I'm sure the 2 terms can be related better than the way I know them,
but here is what I know about both:

A life settlement is used in life insurance when a living person sells
off his death benefit in the policy.  In essence, the living person
gets cash immediately from the buyer, and the the buyer collects the
full death benefit when the seller dies.

A structured settlement is most often used in cases with accidents. 
It occurs when the 2 parties involved come to an agreement of a
monthly (or yearly) amount of money that will be paid to the injured
person for a set number of years or for the rest of his life.  This is
usually done in the form of an annuity.

Just to add a bit of explanation about Life Settlements:
The person or fund (several are oftened packaged into a fund for
investors) buying the life insurance agrees to continue paying the
premiums, thus the policy remains in force until the person dies.  The
price paid by the buyer is a discounted present value of the amount of
the policy and the premiums still due.
The number of these and the date of death are actuarial estimates
based on considerations about the age and health of the person.
This seems unethical to some people, because the buyer is apparently
"betting" that the person will die sooner, i.e., that he will end up
paying fewer premiums and getting the settlement sooner.
On the other hand, for the persons selling their insurance, who are
commonly in financial straits, possibly needing funds for medical
care, the attraction is that they will receive more than the cash
value of the policy if they redeem it with the insurance company.

Right Jack?

That's absolutely right Myoarin, tell him what he's won Bob!  Ahem...
too many game shows for me.

Just a note on the ethical standpoint: although the buyer does get
more money should the person die sooner, that is all evened out when
you're talking about the large number of policies these companies buy.
 They don't do this to gamble, they do it for expected average returns
as they could also do with large amounts of stocks, bonds, or real
estate properties.

Thanks.  I choose the second door.  Oh! :-(   Only GARs ever win.

Excellent and succint answer, Jack.

I've seen this life settlement vehicle used a number of times. Most
often, the senior doesn't want, or need the life insurance anymore,
and wants to stop paying premiums, so they sell their policy for a
lump sum, often with little or no tax consequences.

If you are actually looking to sell a life settlement, Wallacediect,
you should take a look at an institutional funder like Peachtree Life
Settlements: <a href="http://www.life-settlementco.com/">http://www.life-settlementco.com/</a>
or one one the larger brokers like <a
href="http://www.lsalliance.com/">http://www.lsalliance.com/</a>


Looks like wall street will soon have another security to feed it's
cash flow starved customers shortly. Can you spell securitization?

burview,

It is actually not selling a life settlement, but selling a life insurance policy.

A life settlement can also be used a tool not just a needed
settlement. Seniors now have the option to take a life insurance
settlement and still have the possibility of getting re-issued with a
lower premium and better performing policy.

With a life settlement, there is no need to let your policy lapse or
surrender without finding the value of of a possible settlement. Read
more at http://www.lifesettlementpro.com/life-settlement.html