The simplest answer is no. You can use the proceeds from a life settlement anyway you choose. While it’s true that many people use their life settlement cash to pay off medical bills, you are never obligated to do so.
Here are some other financial reasons that many people use the funds for, by selling their life insurance policy:-
- Long-term care
- Memory care
- Pay off debt
- No longer want or need the life policy
- Taking a dream vacation
- Supporting family in times of need
If you have a life insurance policy with a high cash value and are in need cash, exploring the benefits of a life settlement might be the right option for you. Understanding what this process involves and, how it could help you is important before making any decisions regarding your policy.
Life settlements are a niche market in the financial world, and an important one for many people who find themselves in financial complications. A life settlement is a transaction where you sell your life insurance policy to a settlement provider/buyer. The buyer takes over the policy, pays the premiums and, receives the death benefit.
Are There Restrictions of What You Can Use the Cash For, When a Selling a Life Insurance Policy?
It is possible to use the cash from selling a life insurance policy for anything that you choose. Many believe that a life settlement can only be used for medical expenses and this is not the case. It is common to use these funds for this purpose, however, the money is yours to do with as you see fit and, it can really help you when you are in a financial need.
There are many different things you can do with the life settlement proceeds. Depending on the amount you receive for your policy and, what your needs are, the money from a life settlement could change your life. The following are just a few examples of this:
- Pay off medical bills, a life settlement could be a great way to get some cash quickly
- Make a major purchase such as a new car, house, or even a new boat. That’s the great thing about life settlement offers; you can use the money for absolutely anything!
- Donate to charities or causes you find important
- Ensure financial security for your children and grandchildren
- Help a loved one pay off college tuition.
Can I Pay Off Any Type of Debt with a Life Settlement Payout?
You might be surprised by just how much money you can receive from a life settlement. Selling your life insurance policy does not require you to only pay off debt. You can use the funds received from a life settlement for anything your choose, including paying off debt; credit card bills, car payments, mortgages, student loans, or anything else that you need cash for.
Keep in mind that you may have to pay taxes on the life settlement funds you receive based on the state in which you live in.
To find out if you are eligible to sell your life insurance policy for a life settlement try our free life settlement estimate calculator. You can see estimate of what your policy could be worth within minutes
Can I Help My Loved Ones By Selling a Life Insurance Policy?
Life settlements are often a good source of cash for helping your loved ones who may need assistance. By selling your life insurance policy, you can use the funds to help pay for you or your loved ones care. You can also help other family matters with childcare costs for grandchildren or helping your kids pay off their own debt.
If you or have a family member needs care and, does not have medical insurance, a life settlement can be a way to receive money to pay for the costs.
Selling your life insurance policy also allows you to use the proceeds to pay for special equipment that you, your spouse or loved ones may need…such as a wheelchair or lift.
Is a Life Settlement for Me?
A life settlement may be the best decision for you and your family. This option can help with your financial burdens by providing you with a one-time, lump-sum cash payout.
You are not required to use the funds from a life settlement for medical bills alone. You worked hard to pay premiums over the years and, you now find yourself in a financial situation where you need cash. Owning a life insurance policy that is no longer needed or wanted will allow you the opportunity to embrace financial freedom, help you and your family by selling your life policy.
How Can MRE Finance Help You Today?
Now that you know that you can use the money from a life settlement for anything you choose, it’s time to decide if such an offer would be right for you. MRE Finance are experts in life settlements and help seniors everyday find suitable buyers so they can sell their life insurance policies for cash.
Click the button below for the FREE life settlement estimate calculator and find out what the value of your life insurance policy is. You can also call MRE Finance at 1-800-521-0770 and have your questions answered.