The life insurance policies or a life settlement is one of the most popular policies that are gaining tremendous response as a new opportunity for the elderly people to generate instant cash. One can easily request for cash by “cashing in” their life insurance policy and get rewards of the instant cash payment without actually quitting the policy in the hands of the insurance company.
The seniors can use this cash that they receive from the sale in paying medical bills or long-term extensive care expenses, even their everyday expenses. The senior citizens can invest in a new business or a new property or travel or support their children and grandchildren in their needs through the unlocked cash. There are no such restrictions or limitation criteria as to why you need to sell your life insurance policy and where it will be used, etc.
How does it work?
The senior citizens over the age of 70 who own a life insurance policy of their own can certainly sell their policy to a life insurance broker or life settlement brokers. After buying the policy, the buyer becomes the new owner of the policy. After which, the new owner takes charge of paying the premium payments and also collects the total amount of the policy as a death benefit.
How much money is expected to be received?
The sum amount of the policy will be calculated on a step-by-step basis. It all depends on the factors which include age, medical condition, family background, type and value of the insurance policy and the policy premiums that are required to keep it active. Any individual policy owner including corporations, charities, trusts, may easily sell their life insurance policy.
As the life settlements are designed to remain for the entire lifetime, there are situations when people consider lapse of the policy to gain access to the instant cash value. Depending on the basic needs and the urgency of the situation, it can be considered to be a safer option for lending last minute help for people.