Buying Life Insurance during the early or middle adult years of your life is definitely a good financial move as it ensures your loved ones are taken care of in the event of your death. But, financial needs change over time and many people begin to contemplate selling off their Life Insurance Policies. This transaction makes more sense for seniors and retirees with life insurance policies that they no longer need or have become too expensive to maintain, among other reasons. Here are some of the benefits of selling your Life Insurance Policy:
With old age comes less income, mounting bills –including living expenses, medical bills, and emergency bills –and possibly increased premiums due to health concerns. Life settlements provide fast access to cash, making it the ideal way to fund such expenses while keeping you from going into debt.
The Lump Sum Payment
Life Insurance is an investment, meaning it’s your property and you can sell it. This, unfortunately, is a fact most of us are unaware of. Lots of people get stuck with a policy for life and some even lapse or surrender their policies without the knowledge of a life settlement. When you sell a life insurance policy to a reputable life settlement company, you’ll receive a lump sum payment. In exchange, the company pays all future premiums and later receives your death benefit.
When you sell your life insurance policy, you receive cash benefits in return. You can use the proceeds from the sale for virtually anything, for instance, pay off outstanding debts, pay for care, make other investments, renovate your home, donate to your favorite charity, or take a dream vacation alone or with loved ones and create lasting memories, and so on. Whatever the goal, selling your life insurance policy provides the means to make your golden years as wonderful, exciting, and stress-free as it should be.
Life is becoming more expensive with each passing day. And, it gets even harder to pay for premiums once you retire. If your family doesn’t need financial benefits when you are gone, then receiving a life settlement is the way to go. It eliminates the burden of expensive premiums. Also, the driving factor for most seniors to sell their life insurance policy is the increased cost of care –whether social or medical. Therefore, if your family needs money to cover your retirement living, it makes more sense to cash that policy in instead of using up all the family’s savings to cater for present needs.
Change in Lifestyle
Retirement income may not be enough to comfortably sustain your current lifestyle. You probably want to travel more, visit loved ones, or manage/treat age-related health issues. Whatever changes in life circumstances you may be experiencing, a life settlement can supplement your retirement income, allowing you to make ends meet and live out your golden years on your terms.