No doubt that life settlements offer thousands of seniors financial options that benefit them and have paid millions of dollars to policyholders who no longer need their life insurance policy. Even with all of these benefits, a life settlement may not be the best option for every senior.
If you have an unneeded policy and are considering a life settlement, make sure you consult your financial advisor prior to making any decisions and consider the follow questions carefully.
Is there still a need for a life insurance policy?
If your beneficiary of the policy still needs the benefits should the situation arise, consider keeping the policy. If they are financially independent and do not need the policy’s benefits and would not financially struggle, perhaps selling it would be beneficial.
Can you still afford the premium payments?
If you or your family are not having difficulty meeting the policy’s premium payments, then consider continuing to pay them. Some policyholders who are in financial distress choose to sell the policy in order to free up the money put toward these payments. If you are not in need of this money, or if your family is comfortable making the payments on your behalf, consider keeping the policy.
Do you need a lump sum of money?
If you and your family need a lump sum of money to ease money burdens, then perhaps a life settlement could help. The seller receives a lump sum of money for the sale of the policy and is no longer required to pay the policy’s premiums.
However, if you and your family are not experiencing financial strain, then consider keeping your policy. If you are comfortably able to pay the policy’s premium, then consider keeping the policy.
Always discuss financial decisions with your financial advisor. A life settlement continues to be a wise decision for thousands of people with a growing number daily. It has helped many ease the financial burden they are feeling later in life. This may be you.
However, another option may be a better option to a life settlement. These might include a loan, accelerated death benefits, or the cash surrender value of the policy. You should discuss all options with your advisor.
If you or a family member is thinking about a life settlement, contact us. We are happy to offer a complimentary evaluation of your policy and discuss the many benefits a life settlement can offer.