Your preparation for retirement should include evaluating life settlement plans and how it can add value to your quality of life and well-being. Seniors who prepare for retirement financially and emotionally are more likely to enjoy their golden years. After this read, you can become one of them; ready and looking forward to retiring because you know that a life settlement plan has got you covered.
What is a life settlement?
You might have heard about life settlement plans, but are not sure what that means. If you have a life insurance policy, that is considered an asset and, by law, you have the right to sell any asset. For any number of reasons, you might decide you no longer need your life insurance policy and want to sell it. This is when life settlement companies come in. They’re companies willing to buy your life insurance plan, give you a lump sum for it, and pick up the death benefits of that insurance upon the insurer’s passing.
How much you can receive from a life settlement depends on several variables; making each case unique. It will usually depend on such things as:
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The value of the policy, including premiums
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Cost of insurance
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Cash value
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Cost of conversion
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Medical reviews determining life expectancy
Who buys life insurance?
Life settlement companies have the means and the desire to buy insurance policies. Like with any other financial transaction, you want to make sure you’re dealing with a professional and licensed company that has a good track record. You can follow some guidelines about life settlements and life settlement companies provided by qlifesettlements.com to know more details about the entire process. You can either sell your policy directly to a state-regulated life settlement provider, or you can sell it through a life insurance broker who is also state-regulated and holds a license. As a policyholder, you need to know more details to protect yourself and understand how the process can work for you and how you will benefit.
Why would I sell my life insurance?
Ultimately, it’s a personal choice to do that, but there are several valid reasons for why you might want to sell, including:
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Burdensome and expensive premium payments on your life insurance
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There are no beneficiaries
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You have self-sufficient adult children
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You need more money
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Medical expenses to pay
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You have a chronic illness
These are just some common reasons why people might not be interested to continue paying for life insurance. Generally, you don’t need any specific reason to sell it.
Am I a candidate to sell?
There are some criteria to be able to sell your insurance policy and receive life settlement:
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You need to be at least 60 years old
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Have an insurance policy worth at least $100,000
How a life settlement will help you
There’s no doubt that when you reach retirement and your golden years, it will be essential to make your life, not only more secure, but also comfortable and enjoyable. The right life settlement plan can do that for you. How?
Secure finances
Keep in mind that life insurance doesn’t benefit you in any way; it benefits your beneficiaries. But what if your beneficiaries are self-sufficient, or if you don’t have any? It certainly makes a lot more financial sense to benefit yourself in such cases. Instead of paying high premiums for something that you will never use and losing more cash by just letting your insurance lapse, you can secure your financial future with a life settlement.
Utilize the cash
Imagine being able to pay off your mortgage now or all of your debts, and after paying all that, still having enough to travel. That’s what we’re talking about when we’re considering getting a life settlement. You will have the ability to make major and crucial payments as well as have enough cash to enjoy your retirement.
Medical expenses
We are all living longer thanks to medical advancements. Yet, the longer we live, the more likely we will need more medical assistance. We can only hope that the future holds nice things, but the fact is: anyone can get sick or need extensive medical care for any sort of situation. Chances are, your Social Security paychecks cannot pay for most medical care costs. Life settlements will give you the cash you need to help you in difficult times.
Maybe 2020 will be the year for you to sell your life insurance. In many cases, you can make 8 times more through a settlement than just leaving a policy to lapse. Talk to the experts about it, and see how a life settlement will enrich your life.