Life Insurance Settlements : Unlock the Cash from Your Life Insurance Policy Today
A Life Settlement is gaining popularity as a new opportunity for seniors to generate cash. By “cashing in” a life insurance policy, seniors can reap the rewards of an immediate cash payout without lapsing or surrendering the policy to the insurance company.
A Life Settlement, or the sale of a life insurance policy, is gaining popularity as a new opportunity for seniors to generate cash. By “cashing in” a life insurance policy, one can reap the rewards of an immediate cash payout without lapsing or surrendering the policy to the insurance company.
Faced with rising insurance premiums, increasing cost of healthcare and long-term care, more seniors today are choosing to sell their life insurance policies to third parties for a lump sum payment. Rather than let their policy lapse, seniors have the option of cashing out early and enjoying a higher quality of life.
Seniors can use the cash they receive from the sale to help pay for medical expenses, long-term care expenses, or everyday living expenses. Additionally, seniors are using the “unlocked” cash to travel, invest in a business or new property, or support their children and grandchildren. There are no restrictions or limits to how the cash may be used once the policy is sold.
How does it work?
By purchasing the whole, term, or universal life insurance policy, the buyer becomes the new policy owner. This means that the buyer takes over the premium payments and ultimately collects the full amount of the death benefit.
What’s the catch?
What should I know before considering a settlement?
1. The policy holder is over age 70
2. The policy is worth $200,000 or more
3. The policy holder is chronically ill, and/or their health is declining
4. Additional cash is needed to pay for cost of health care of long-term care
5. Policy holder is experiencing financial difficulties or needs additional funds to improve the quality of life
6. There is difficulty paying the life insurance premiums and are at risk of lapsing the insurance policy
7. The senior would like to remain financially independent
How much money can I expect to receive?
The lump sum payment will be determined on a case-by-case basis. It depends on a number of factors, including age and medical condition, the type and value of the policy and the premiums required to keep the policy active. A no-obligation appraisal of your policy can be requested before making the decision to sell it.
Any policy owner, including individuals, corporations, charities or trusts, may sell any life insurance policy, including group and term policies.
What types of life insurance policies can be sold?
How long does it take to get the funds once my policy is sold?
Will I owe taxes on the money I receive?
How do I find a buyer for my policy?
Source: Free Articles from ArticlesFactory.com
ABOUT THE AUTHOR
Chad Gold is the Founder of Life Insurance Buyer. Gold started the company after working with several friends age 65 and above who shared similar wishes to have additional money for themselves or their family members to pay for medical care, assisted living, or to have money for vacations, or give the money to family members, or even to pay off debts and/or creditors.