Selling Your Life Insurance: A Seniors Guide

LIS APril When we get to a certain age, many times our life insurance policy is no longer needed or wanted. When this is the case, it may be time to opt for a life settlement which is the selling of your life insurance policy. Selling your life insurance policy through a life settlement broker is a great way to make use of a policy that you have paid into for so long.

Life settlement companies purchase your life insurance policy for more than its face value, supplying you with funds that will allow you to enjoy your retirement. The policy purchaser will work to find you the best deal for your policy and will take all payments after purchase, leaving you with a lump sum.

Some of the top reasons why you may want to sell your policy are:

  • You no longer want your policy
  • You no longer need your policy
  • You can no longer afford your policy

When children move away and you no longer require the same financial security for them as you once did, you may want to consider selling off your policy to a purchaser. A life settlement is a great way to supplement your income after retirement and can assist you with the pricey cost of living in a retirement home. As we get older, our medical expenses tend to get higher, costing us more money. Selling your settlement will assist you with all sorts of expenses related to retirement and old age.

The Future is Supported by the Present: Opt for Life Settlements

Life settlements is a booming market. By definition, a life settlement is an act of selling an existing life insurance to a third party, receiving payments larger than the cash surrender value, but lesser than the net death benefit. These payments have opted when there is a sudden cash crunch, and there is a need for cash. Various companies invest in this business and are known as Life settlement companies.  These companies fund the finances behind the purchase of life insurance policies.  These companies may invest their own capital or may raise the capital from various other investors by implementing certain policies in the market.

Life Settlements can be opt’d into when:

  • When the client may no longer want his policy
  • When the client wants to invest in a different kind of policy
  • The policy is at the end of its coverage period
  • In the case of the death of the person having the primary income in the family, where the whole insurance may become a burden.
  • When the premium payments cannot be afforded by the client.

These transactions are advised and maintained by the Life Settlement Brokers. They are graded as per their services offered and the amount negotiated in the sale transaction. Various brokers have impressive portfolios based on this. Now need to be licensed by the state to carry out such deals. In addition to that, the insurance needs to be licensed by the state. This ensures that after the sale, the premium of the policy is paid by the beneficiary or the one who bought the insurance.

The benefits of selling the policy are huge. Some of them are:

  • Carry out a better lifestyle with receiving a large amount than the cash surrender value.
  • Relief from premium payment of the policy.
  • Relief from unaffordable and unneeded life insurance policy.
  • Have the peace of mind and dignity with significant funds to support retirement.
  • The ability to redirect the cash transactions to something with more benefits and profit.
  • To fund for long-term care and providing better medical facilities to the sick in the family.

Needless to say, if you don’t need a life insurance policy, don’t let it be a burden to you. Free yourself from the drudgery of premium payment. Opt for Life settlements.

  

A look at the top 3 pros of a life settlement

There are numerous benefits to life settlements. People often get confused with the concept of life settlement and wonder if selling their life insurance policy is profitable or not. However, basic ideas about life settlements, including its pros, will help you in making a more firm and well-rounded decision about life settlements.

One can hire a Life settlement broker and Life settlements companies for a better understanding of the rules and regulations on life settlements. However, before you get more confused about the advantages and disadvantages of a life settlement, let’s have a look at the basics of it.

What is a Life Settlement?

The process of selling the life insurance policy to a third-party buyer in exchange for cash is called a life settlement. The value generated from a life settlement is more than the cash surrender value but less than the face or death value of the policy. In the case of a life settlement, the purchasing Life settlements company pays the rest of the premiums on behalf of you. Once you paid out for the policy, the company will get the entire death benefit of your policy.

If you are wondering why you should consider a settlement, then have a look at the benefits:

  1. Monetary benefits: ‘Money’ is the first and simple answer to this question. Selling your life insurance policy to a third-party buyer facilitates you with a higher amount of cash which may help you in dealing with your post-retirement crisis.
  2. Get rid of expensive premiums: The premiums of Life Insurance are costly. If you are unable to pay the monthly or yearly premiums of your policy, opting for a settlement is worth considering. It helps you in getting rid of the expensive premiums for a lifetime.
  3. Post-retirement income: Policyholders who are going through serious illness can consider a settlement so that they can support themselves and pay off the expensive medical bills. It is a kind of post-retirement income that empowers senior citizen in the last days of his life.

A Summary of the Process for Life Settlements – 7 Key Steps

Are you planning to opt for a life settlement? Do you know the steps to trade a life insurance policy? Well, if not, then this article will guide you through the most crucial steps of the life settlement. But before discussing the steps, let’s explore what a life settlement is.

A life settlement is not a new concept for residents of Miami and Fort Lauderdale. Over the years, a life settlement is considered to be one of the most money-spinning options for senior citizens. A Life Settlement is the selling of your life insurance policy for cash to a third-party buyer or insurance company in exchange for monetary benefits. However, the program is intended for older people who are 78 years or older. But people who are 65 years or older suffering from severe health issues can apply for a life settlement.

In order to get the best deal in a life settlement, you need to get through seven significant steps and here they are. Have a look:

1)   Hire a life settlement broker: If you want to enjoy a comfortable and convenient life settlement; hiring a life settlement broker is the first step.

2)   Find the best deals and get a client: The market value of a life settlement varies from location to location so consult your agent and think over a number of options before finalizing on any one.

3)   Go for applications: Once you have determined that you want to go for a life settlement; ask your agent to complete the application procedure with the required authorizations of both the government and the buyer.

4)   Clear documentation: This is one of the most crucial steps of the life settlement process. Submit all necessary documents including physician statements, photos, and copies of the insurance policy itself.

5)   Verify the documents: At this step, the insurance company will verify the entire deposited documents to make a symptomatic bid both for you and your buyer.

6)   Share the bid: This step involves the sharing of the proposal with both the policy owner and the customer to settle on a potential match.

7)   Fund transfer: The last step includes the switching of ownership and beneficiary followed by the transfer of settlement funds to the designated account of the original policyholder.

 

A Small Guide on Life Settlement

Life settlement are similar to the sale of a car or home. The rights of the life insurance policy are legally transferred to the new owner of the policy. The buyer will then be responsible for future premium payments and has a right to own it. A life settlement is a cash settlement that you get when you sell it to the buyer.

When is it done?

A life settlement is done by those who no longer need it and opt for the cash. At times, people need cash immediately for various reasons and do not find it necessary to hold onto the life insurance policy. During emergencies, the life settlements are sold to obtain cash so that the seller of the policy can use it for personal reasons. The reasons can be due to costly premiums of the policy which can be a financial burden. The original purpose does not exist then and the kids moved out and there is simply no need for it. Many times the beneficiary of the policy is deceased and the policyholder’s financial situation will proceed to improve.

Eligibility for life settlements:

There are certain general guidelines as to who can sell a life settlement. It is those who are above the age of 65 with chronic health conditions or those with severe health issues that qualify. Any type of policy can be qualified for a settlement like variable life, universal life, convertible term life, etc. One should approach a consultant to know more about the eligibility criteria.

What is the value of life insurance policy?

Every buyer in the market comes with different investment parameters like mortgage lenders who come with different guidelines for their loans. A life settlements offer varies from buyer to buyer. Some companies carry out a bidding process to generate competition and get the highest offer.

Considerations:

The whole process may take a few months to complete. The life settlement may be taxable in some states.

 

Explaining What Life Settlements is All About

A life settlement is the sale of a life insurance policy to any other person or the third party. It is also known to many as ‘life settlement’ or ‘lifetime settlement’. Life insurance settlements offer the policyholder an amount that can be more than the actual cash surrender value of the policy. The company also gets an opportunity to earn profits too. The third party or the purchaser of the life insurance policy, will pay for the premiums and other expenses. The purchaser will also get death benefits in return when they take over the policy. Older policyholders, as well as younger policyholders, can also sell life insurance settlements.

Why Sell in the First Place?

One opts for a life settlement when there is a need for cash. This can be obtained through the sale of the insurance policy. One can even sell it when the life insurance is not necessary anymore, and there is no need to hold the policy when one can get more money for selling it. In fact, as one can get more money for selling it than retaining it, many prefer to sell it for its benefits. Many policy holders cannot hold the payments of the premiums and other such rules and are unable to bear the financial burden of the premium payments. The purchaser is the whole and sole beneficiary of the existing policy and will henceforth begin to pay the premiums accordingly.

A Legal Transaction

Selling your life insurance policy for cash is a legal transaction, and you can do it anywhere and sell it to anyone. There are three parties involved here, and they are the seller, buyer and the insurance company. Everyone knows about the deal and the other details that go into selling the policy. This makes the deal very transparent and legal so there is no illegal activity that can take place during the transaction. It is an easy and hassle free process if the insurance company is well known, and the selling party has all the right paperwork and complete payment of premiums.

 

 

What Exactly is a Life Insurance Settlement?

Don’t need your life insurance policy anymore? If so than you have decided to surrender your insurance policy to an insurance company. Just hold on for a few moments, because maybe you would get a better option than surrendering the policy at the company for cash back.

Going through this content, you would certainly get overwhelmed. You can get more value than the amount you would get from the company surrendering the policy. Don’t you need some extra benefits? Then why not make a smart choice and surrender your policy today.

Life Insurance Settlements are Beneficial

Have you heard or ever gone through life settlements? This is the option which can be very beneficial for you. This is the process of selling your existing life insurance policy to any third party in return for cash value. The cash amount collected from a life settlement is certainly higher than the amount that you would get by surrendering your life insurance policy at the insurance company.

You may have your personal reason to sell or surrender your life insurance policy but give it some thought. The insurance company may deduct some amount from the total amount. Paying the premiums time to time and with such deductions, you would certainly feel discarded. A life settlement is the best value-back option of your time and money investment.

Consult a Life Settlement Broker Now

With the best value option, you need to list out the life settlement companies. For the benefits of the life settlement, there is a high demand of such companies and numerous companies have been established.

You need to ensure that you are dealing with a reputable company. For life insurance settlements, there are many options provided by the company. You must consult a life insurance broker so that you could get a fair value for a life insurance settlement.

These brokers are highly talented, qualified and are licensed to consult for helpful tips. It is indeed a tricky process to find the best cash value settlement for your life insurance settlement. This is a complicated transaction but beneficial for the buyer as well as the seller. You get the money back when you are alive so go ahead and sell your insurance policy rather than surrendering it.

 

 

The Best Way to Attain Financial Stability Is to Know the Worth of Your Existing Policies

Life in contemporary times is pretty synonymous to financial accomplishment. Philosophies apart, a human of modern times can wish and buy anything and everything by having the desired amounts. Of course, such crazy bankability can not be achieved with sheer hard work; you need to work a little smart as well.

On a specific note, finding a compliant life insurance is pretty much equal to the smart work mentioned above. A biddable life insurance covers all aspects of life settlements in the smartest possible fashion.

One Should Be the Decider of His Own Premium

The question appears, what exactly does it means by a compliant life insurance? And, the simplest answer is something that offers the most of your investment. Yes, all insurances promise that, but in realality, many of your insurance claims are lapsed.

In short, the conditions within your life insurance settlements needs to be arranged in such fashion that can make you fret free about payment terms, especially when you feel you want that financial freedom to make any decision. It should not involve those annoying claws of fines or something like that. After all, you should be the decider of your own future premium, time to sell properties, etc.; not someone else.

Financial Claws No More Baffling

It’s a fact that understanding the financial terms are the most baffling affairs on the earth. You can say the same is a reason that people find all insurance policies biddable initially and later feel being trapped. The most fitting way of recovering from the above perplexing scenarios would be to find a compliant life settlement broker. These are the best folks who can help you in negotiating the best deal.

They make it happen through their gigantic network of most acquiescent buyers for your scheme. It is like a competitive scenario that is generated to make sure the investor bags the best possible offer for their precious properties/investments.

In fact, they offer the needful assists in order to make the most of each opportunity for financial settlement. They also guide you with handy tips to pick the most biddable policy. In short, it’s a celebration time!