Seniors Sell Your Life Insurance
Irvington, NY — April 28 2009 /PRAvenueNW/ — Let’s face it – the past twelve months have been very hard financially on you senior citizens. But help may be on the way from a place you probably never thought about – your life insurance policy! Through a transaction known as a Life Settlement, you can receive market value for your life insurance in cash – and never have to pay expensive premiums on the policy again.
Most likely, you’re finding that your house and stock portfolio have both declined in value – perhaps by a great deal. You have good reason to be concerned; after all, your plans for your golden years may be in jeopardy, whether they are for traveling, living in a comfortable residence, or spending time with loved ones.
Think back to when you first bought your life insurance policy. You were probably in your 30s or 40s and wanted to protect your family against your premature death. Should anything happen to you, your spouse and children would be protected. But things have changed! Your children are now grown and financially independent and the financial needs of your spouse (if still alive) have declined significantly and may be covered by your savings and/or Social Security. Do you really need that life insurance policy anymore?
If the answer is “No”, you should definitely consider a Life Settlement. Most people who have a life insurance policy they no longer need wind up either 1) letting the policy lapse by not paying the premiums or 2) surrendering it to their insurance company, in which case they get back the “cash value” of the policy less a small administrative charge. However, a Life Settlement will always provide more cash than either of these other options – and often many times more cash.
Here’s an example. An 84 year old woman in good health owned a $500,000 policy with a cash value of $24,000 and annual premiums of $21,000. She was able to sell this policy through a life settlement for $215,000 – 9 times the cash value!
How much cash will your life insurance provide if you settle the policy? That is a complicated question which depends upon many factors, including your age, health, terms of your policy, and the state of the market for your policy at any point in time. In general, the older you are and the poorer your health, the higher the amount of the settlement will be.
A life settlement is done by transferring ownership of your policy to a company (known as a “provider”) on the “secondary insurance market”. Though the settlement will be less than the face amount of your policy, it will often be large enough to provide for you through your retirement years, so that you will be able to live as you choose, with no financial burden being placed on your family.
The process of obtaining a life settlement to fund your retirement can start by contacting a licensed life settlement broker. A settlement broker has access to a wide variety of providers and can obtain the best offer for your policy through a bidding process. The broker can explain the Life Settlement process to you in detail and answer any questions that you may have. Life Settlements are not for everyone – and only by completely understanding your options can you fully ensure that you’re making the best financial decision for you. There is no cost to investigate a life settlement, and you are under no obligation to accept any offer to buy your policy.
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