Probably the simplest and most direct way of explaining to someone exactly what a whole life insurance definition is would be to say that a person purchases a policy for a specific amount of money, pays monthly or annual premiums for it up to a specific designated age which can go as high as a hundred years old, and when they pass on, that designated amount is paid to their beneficiaries. There can be any number of variables attached to these policies by agreement between the holder and the issuing company, but this is the basis they all begin at. Some of the possible considerations might involve the policy building cash value which might be borrowed against over time, an earlier age for ceasing having to pay the premiums, and a way of lowering those payments over time by utilizing that cash value build-up to do so. These alternates can be worked out at the beginning, or at any time along the way that the policy is in effect.
When folks are talking about what it is to sell structured insurance settlements, again, basically it is this. One of the terms of the policy the owner made was that upon their demise, instead of a lump sum payout, the proceeds would be offered on a monthly allocation plan to the heir. In many instances the policy holder recognized that this would be of particular value to the heir who may have shown poor ability in handling bulk sums at any one time. This way of handling it would help ensure they would be protected into the future. At some point though, that person might decide for whatever reason such as a medical emergency, or perhaps a child’s education, they would like to get the money immediately. There are any number of companies willing to buy their structured settlement for a lump sum. Obviously, these companies are in business to make a profit, so the payout will be for a lower number than the recipient would receive over the course of time. It may however, prove to be in their best interest to close the deal at once.
All of these issues and considerations require a lot of thought, and one might be wise to seek outside counsel to assist in the final decision. Seeking a professional is solid advice on almost any topic, but especially finance and life insurance. They will be able to help you much more than Internet research alone.