Life Insurance Settlements & Changing Circumstances
Many Americans discover that their personal or financial circumstances have changed over the years and that the original reasons for buying a life insurance policy no longer exist. Being free from the financial burden of paying premiums, while receiving a lump sum payment, may now be a better choice.
A life insurance settlement can provide immediate liquidity for an unwanted or out-of-date policy.
Why Get a Life Insurance Settlement?
Many policyholders know they can cash out of their term life insurance policy, but many aren’t sure what the benefits are. Policyholders who wish to sell their policy to a life settlement broker are liquefying an asset. Policyholders will make more from their policy than surrendering it over to their life insurance company and obtaining a lump sum known as the cash surrender value of a life settlement.
Individuals can improve the quality of their lives by surrendering life insurance policies for cash. They do not have to worry about paying monthly premiums or the possibility of lapsing their insurance policy. Oftentimes, a lapse can lead to a loss of coverage in insurance, thereby rendering the policy null and void. Brokers, like Life Settlements Inc., liberate their clients from having to pay monthly premiums. In exchange, the brokers and policy buyers receive the face value of life insurance policies.
How Can a Life Insurance Settlement Help?
A person with a life insurance policy can take advantage of their asset and be financially rewarded before the maturity date by cashing in life insurance before death. Life settlements allow the policyholder to benefit from the proceeds while still alive.
A life settlement can be a valuable source of liquidity for life insurance policyholders who would otherwise allow their policy to lapse, or surrender the policy for a reduced cash surrender value. Most people are unaware of the asset that is their life insurance policy, if they can cash out a life insurance policy, if cashing out a life policy is taxable, and other important aspects of this opportunity. Let our experienced life settlement brokers assist you with these matters so that you can maximize the value of your life insurance policy.
Top Reasons for Selling a Life Insurance Policy
Business/Estate Sale
A policy purchased under a buy-sell agreement or estate liquidity may become unneeded. Typically the business or estate was paying for a policy, and the owner of the policy has liquidated the asset. When the business or estate is no longer, the policyholder may not wish to incur expensive premiums each month, especially if they are still relatively young and in good health.
Exit From a Company
Executive and top-level staff members of an organization often acquire numerous life insurance policies in the course of operating their company. Following an exit from a company, these policies may no longer be wanted or serve their purpose as the key person the policy was designed to protect is no longer involved in the business.
Diminished Estate Value
This scenario occurs when estate tax passages and liabilities call for increased taxes on estates. In such cases, people are typically reluctant to keep more life insurance than is absolutely necessary.
Terminal or Chronic Illness
As we advance in age, certain medical conditions may set in that can become quite expensive. Costly medical expenses combined with a worsened physical, and oftentimes financial health, can set in and demand the funds needed to pay for the expenses of daily life.
Liquify Dormant Assets
Policyholders may choose to sell their policy for a variety of reasons. An immediate need may call for a cash advance that would outweigh the benefit of letting a policy come to maturity. Some individuals wish to provide prompt assistance to their favorite relative, a charity, or a non-profit organization of their choice. Others use the funds to pay debts or get into other businesses that can create alternate streams of capital.
Resolving Quarrels
If the policy is a part of litigation among partners, and the cause of tension between family members, a policyholder may choose to end the policy early. Ending the policy can be done through a broker who will purchase it larger than the cash surrender value obtained from the insurance company that issued the policy. Those who are beneficiaries of a policy may quarrel amongst themselves, making the policy owner feel as though the people around them may benefit from their death. Selling one’s life insurance policy grants one the ability to distribute the cash in one’s lifetime as one so chooses.
