One of the main reasons people give after canceling their life insurance is that they didn’t realize there were any other options. If you are considering canceling your life insurance or letting your policy lapse, there is a better option you may not have known was possible.
Instead of canceling your life insurance, you may be able to settle your policy. Ok, so you may be wondering what’s the difference between settling and canceling? In one word: Money. Canceling gets you out from paying your premiums, which is good. But you get nothing by way of benefits, which is bad.
Selling your life insurance policy is a great option for some people. It’s the goldilocks option and it’s often seen as the best of both worlds. Your policy is purchased by a licensed Life Settlement provider who takes over the payments and eventually receives the death benefit. You, on the other hand, receive a one-time, upfront payment (aka cash settlement) and the premiums are no longer your responsibility. That’s right, you receive an upfront benefit and you never have to pay a premium again (same as when you cancel). That’s a win-win.
According to Lewis & Ellis Actuaries and Consultants “studies suggest that a lot of seniors allow their policies to lapse due to personal financial concerns, and a general lack of understanding of what they’re allowed to do with their policies, the report said. One, for instance, found that more than half of senior citizens didn’t know they could sell their policies, and of that number, 90 percent of those who saw their plans lapse would have gone for a life settlement if they had known they could do so”. When you let your life insurance policy lapse this results in no coverage upon death and no death benefits paid to your beneficiaries.
Generally, you need to be age 70 plus for this option but slightly younger folks with significant health issues may also be eligible. Not everybody will qualify for a life settlement but it’s certainly worth checking into this solution if you’re thinking about canceling a life insurance policy.
For those who have a terminal or chronic disease with a relatively short life expectancy, it is absolutely worth your while to look at a life settlement. In this case, though, you may qualify for a viatical settlement. Viatical settlements afford the highest possible payouts on a life insurance policy, often two or three times higher than a life settlement. If you are seriously ill and need money to cover immediate medical expenses, don’t allow financial stress to cause you to cancel your life insurance when there are better options available.
MRE Finance helps seniors sell their life policy with ease and receive the highest value cash payout. The FREE online life settlement calculator provides an estimate of the value of the policy in minutes or give the experts a call at 1-800-521-8770.