How To Finance Your Senior Life With A Life Settlement

 

Couple checking finances and going through bills|How To Finance Your Senior Life With A Life Settlement

 

Life Settlements Maybe Your Ticket to Huge Found Money

You could be sitting on a gold mine and not even know it. As a matter of fact, I bet you have thought about throwing away this gold mine more than once. Crazy, right?!

Well, it is no crazier than cashing in or, letting their old, unwanted life insurance policy run out. Why? Because, there is a real possibility you could convert some or all of that expensive, unwanted policy into more cash than even what is in the cash value. Really. It’s called a Life Settlement.

There is an entire segment of the insurance industry that exists to buy these types of policies. From folks that are simply tired of paying for them or need cash more than they need coverage. It is not for everyone so, let’s take a moment and breakdown how this works.

Life Settlement Companies Pay You Real Money

First of all, these transactions require the person to be underwritten in reverse. What this means is, the life settlement company is going to pay you real money. AND take over your premium payments in order to become the owner of your policy. Their end game is they will also become the beneficiary. And collect the death benefit on your policy once you die. It only makes sense for them to look at your policy as an investment.

Hence, a 22-year-old healthy athlete with a $50,000 policy is not a candidate for this type of transaction. A 78-year-old with heart disease or cancer with a $500,000 makes for an excellent candidate. This is not to say you need to be on your death bed to make this work. It’s just something you need to know going in.

Now, let’s say you made the decision to do a life settlement. And the company agrees you are a good candidate but, you want to keep a portion of your death benefit. You say $100,000 out of the $500,000 policy you have. Most life settlement providers will try to make that happen for you. Kind of the best of both worlds.

What are the drawbacks of a Life Settlement

Well, you might not qualify. If that happens, you always have the option to just cancel your policy. Or reduce it (only certain types can do that). Assuming you do get approved and accept the settlement offer, you cannot change your mind later. Once the documents are signed, it is a done deal.

Well, you might not qualify. If that happens, you always have the option to just cancel your policy. Or reduce it (only certain types can do that). Assuming you do get approved and accept the settlement offer, you cannot change your mind later. Once the documents are signed, it is a done deal.

These transactions are generally available to folks over the age of 65 with policies of $250,000 or larger. There are circumstances when these parameters can be expanded but, these are a good thumbnail reference point. Even certain term insurance policies are eligible.

In order to make sure you are making the best decision possible when it comes to something as serious as giving up your life insurance. You need to involve an insurance professional. Look at all your options and make sure you understand everything before making a decision.

Here’s to hoping you find a huge pile of found money in your own hidden gold mine!

About the Author:

Greg Durette is a licensed insurance broker. He has spent over 33 years working with individuals and businesses throughout the USA. He teaches a better understanding of how to minimize the risks of retirement and estates. Through the use of different types of life insurance, annuities, long-term care insurance and disability insurance products and strategies.

Also, he is the host of the “Wicked Insurance Matters with Greg Durette” radio show. You can hear live every Wednesday from 9:30-10:00 am ET on BlogTalkRadio.com.

All of Greg’s contact info and social media links can be found on his website: Http://www.FutureSecuredFinancial.com

 

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