Sometimes life goes according to plan and sometimes, well, it just doesn’t. When it doesn’t, selling your life insurance for a cash payment through a licensed settlement provider can be a welcome solution. Here’s what you need to know.
Unlike lapsing or surrendering your policy to the insurance company, the cash payment you receive from your settlement provider is known as a life settlement. Life settlements result in a one-time payment that is lower than the death benefit but higher than the cash surrender value of your policy. The average age of those who sell their policies is 75, although this is an average and not a hard limit.
How Can Selling Your Life Insurance Policy Help
- You can use the money. People often ask if there are restrictions on how you use your life settlement and the answer is no. You can use the money to lighten your load with day-to-day living expenses. You can apply it to cover medical or other unexpected necessities. You can replenish a rainy-day fund or you can spoil your loved ones and enjoy seeing their eyes light up when you do. This money is yours and you can use it however you like.
- Relief when your premiums on that policy just aren’t affordable anymore. Odds are that things have changed a lot since you bought your policy and the premiums may have become unaffordable. Whether your rates have gone up or your income has gone down, sometimes continuing to pay those premiums is a burden. Selling your life insurance with a life settlement relieves that burden.
- You won’t lapse your policy. When you stop paying premiums, your life insurance policy lapses, and you generally receive nothing. And that’s not good.
- Help when it matters most. Your life settlement can be used for anything but it’s often used to cover two very important types of care: memory care and long-term care. When ongoing care expenses are unaffordable, not covered or both; selling a life insurance policy can be the most welcome solution.
Visit mrefinance.com/free-life-settlement-calculator to find out what the value of your policy could be worth today!