Get $50 Cashback Bonus | Lending Club vs. Prosper Free Report                         

Loan Calculator | Mortgage Rates

About Me | Contact Me | My Ramblings  

-

Making the Case for a Life Settlement

July 25, 2013 | Insurance | No Comments

life-settlement-proccedsIndividuals who have a life insurance policy may feel they have limited options based on the terms that are included with their policy. Many senior citizens often let life insurance policies lapse or cash out an unnecessary policy for a small amount of cash. However, life settlements for seniors exist which can be used to unlock the benefit a life insurance policy provides to beneficiaries.  

A life settlement is the process of selling a life insurance policy to an investor or third-party. A payment is made based on a percentage of the death benefit. This means a senior can receive a payment that will often be more than the cash value offered by the policy. Selling a policy for cash is better option for the policyholder than letting the policy lapse or simply collecting the cash value. A life settlement company will purchase and the policyholder will no longer retain ownership of the policy. The purchaser of a life insurance policy will be the one collecting the death benefit.

End Financial Struggles

One reason a life settlement may be a good option is to eliminate the burden of paying a premium each month to maintain a life insurance policy. Most seniors can choose to sell their life insurance policy for cash when making monthly payments if a financial struggle. Seniors can receive a lump sum of cash to use as a means of financial freedom. Life settlement companies provide a lump sum payment based on a variety of factors, such as current health and life expectancy. Find out more information on life settlement.

Considerations for Seniors

Senior citizens who need access to funds due to financial concerns may want to consider the use of this option. Selling a policy for cash does not limit anyone from obtaining any other insurance options. The best use of a life settlement is to take a vacation or even pay for a long-term care policy. Many options to how a cash payout can be used are available to seniors. They only need to learn about available possibilities.

Financial Empowerment

Seniors who are relying on social security or pension payments may not have enough funds to fully enjoy all the benefits of their retirement years. Life settlements offer a way for seniors to reorient priorities. This means other expenses can be paid without having to sell other assets to make up the difference. If a life settlement is used correctly, then any life changes that occur will not be a financial burden.

Contact a life settlement provider for more information about selling a life insurance policy. A representative will explain the process and provide an estimate of an expected payment for a policy. 

 

 

 

 Join

 & get new posts delivered to your in-box!

 

Leave a Comment

CommentLuv badge