If you have a Life insurance policy that is unwanted, unneeded or unaffordable a Life Settlement may be an option for you. If you are over 65 and can’t afford your Life Insurance premiums or don’t need your policy anymore… A Life Settlement can be a great alternative to accepting the Life Insurance Company’s surrender value for a Life Insurance policy that is about to be lapsed or surrendered. This also works for Term Insurance that has no surrender value. You can sell your Life Insurance policy for a lump sum cash settlement greater than its cash surrender value and certainly better for you than letting your policy lapse. In the past, if you owned a Life Insurance policy that you no longer wanted or needed, you generally had TWO (2) Options: 1. Surrender the policy for its cash value, if any or 2. Allow your policy to lapse. Life Settlements offer you a 3rd Option: After all alternatives have been considered and the conclusion is that it is time to lapse or surrender a policy, a Life Settlement can offer significantly greater cash to you than the salvage value you would receive from the Insurance Company..
A Life Settlement is a financial transaction where a policyholder will sell their Life Insurance policy in exchange for a lump sum, cash settlement.
Life Settlements offer policy owners a way out of their financially crippling Life Insurance policy without requiring them to lapse or surrender their insurance.
If you are in need of a way to escape from your costly Life Insurance policy, then it’s time to sell your Life Insurance policy in exchange for a Life Settlement.
Most importantly, a Life Settlement will give you full access to the true value in your Life Insurance policy allowing you to plan for your family’s future, pay off any accumulated debt, and provide you with a financially fruitful retirement.
With a Life Settlement, you can break free from the financial restraints that insurance companies place on you.
Here is a hypothetical example of how a Life Settlement might work. John is a seventy-year-old who owns a $350,000 Life Insurance policy. Like everyone who purchase life insurance, John had a good reason for taking out his policy. In his case, he wanted to provide a source of cash to his business if he should die prematurely. This very popular type of life insurance is known as “key man insurance”. But look at what happened… John didn’t die prematurely. In fact, he retired and the business was taken over by his children. John now looks at his Life Insurance policy in a different light. He views his Life Insurance policy as a financial burden that’s taking up money he’d rather be able to spend on enhancing his current lifestyle. John could give the policy back to his insurance company for its cash value of $35,000 or he could choose to pay no more premiums and let the policy keep going until it lapses. Or he could do something else. He could sell his policy in the marketplace called Life Settlements. John decided to sell his Life Insurance policy. Shortly thereafter, his sale closed and he received a check for $110,000 even though the cash value was only $35,000.
Term Policies are among the most likely Life Settlement prospects to be overlooked as a candidate for a Life Settlement and they should not be overlooked! Since Term Policies generally don’t have any cash surrender value, a Life Settlement can provide “found” money to the policyholder, as long as the policy is convertible to a permanent product.
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