Life Insurance Settlements
Learn three reasons why taking life insurance settlements while you are still alive makes sense if you’re a senior and you can receive a lump sum payment with a single life settlement option.
Reasons to Settle Your Life Insurance While You’re Still Alive
Many seniors fail to realize that they can enjoy some of the proceeds from a life insurance policy while they are still alive. While the payout will not be as high as that given to their heirs upon their death, it is still often more than the cash surrender value. In many cases, life insurance settlements may be 20 percent of the policy’s face value. Here are some reasons that a senior might want to cash in their life insurance policy:
It’s No Longer Needed
Many adults bought life insurance policies to make sure that their families were taken care of if something happened to them. This made a lot of sense at the time, but now the children have grown and become independent adults who do not need the money. Therefore, the senior may want to consider the impact that selling their policy could have on their own lifestyle. One option you may want to consider is a single life settlement option.
It’s Reaching the End of the Coverage Period
Adults who bought term life insurance policies may be unaware that these policies have a finite coverage period. Many agents may suggest that you convert your policy to a different type of life insurance. For many seniors, however, it makes more sense to take the percentage of the face value and use the money for living expenses. Stop and think for a moment what difference 20 percent of a $1 million policy could do for your retirement plans by taking advantage of fixed amount settlement option.
It’s Hard to Make Payments
You may have struggled to faithfully pay your life insurance payment each month, but that struggle may be getting even harder. You may discover that your Social Security payment never seems to reach far enough, or perhaps you want to set aside some of the money to take care of final expenses while enjoying the rest of it. Instead of continuing to struggle, consider selling your life insurance settlement. You may discover that this gives you the money that you need to enjoy life well into the future.