Life Insurance Settlement
Do you have an insurance policy that you no longer need? Here are some reasons you might consider selling it. A life insurance settlement is becoming a popular investment to consumers who don’t need their life insurance policy.
A Look at Life Insurance Settlements
Many people have life insurance policies. It’s one of those things that you purchase and never think about afterward. As long as you can continue paying the premiums, there is no reason to look at the policy again … or is there?
An insurance policy is a financial planning tool. When you first bought your life insurance policy, you must have had a reason for it. Most people buy it to ease the financial burden on their family in case of death. It is worth your while to evaluate the need for insurance every few years so that you can decide if it still fits your needs.
Unfortunately, insurance companies only give you two options with your policy: you can let it lapse by stopping premium payments or surrender it for some cash value. However, you might want to consider life insurance settlement as a third alternative. Selling your policy to a third party allows you to get cash in return for something you no longer want to keep.
Reasons to Consider Selling Your Policy
1. You can no longer afford to pay the premiums.
It might have been easy to pay the premium amount when you first bought the policy. It can be hard to keep up when you’re on a fixed income after retirement, however.
2. You no longer need to replace lost income in case of death.
Many people purchase insurance so that their family can cover funeral costs and other financial obligations. If your children are all grown up and financially stable, however, you can sell your policy instead.
3. You need funds for your retirement.
Your savings and Social Security payments may no longer cover your expenses, especially when you consider rising healthcare costs. You may need funds to hire in-home nursing care or to pay for hospice services. A single life settlement option can give you access to funds when you need them.
You should keep in mind that your life insurance policy is similar to a house or car in that it is a piece of property you own. You can sell it or transfer ownership if having the policy no longer fits your needs. A life insurance settlement can be more beneficial than letting it lapse or simply surrendering the policy to the insurance company.