Life Insurance Settlements
Find out what a settlement on a life insurance policy is and how you could extract its value and put it to use to enhance your quality of life right away.
What Life Insurance Settlements Are and When to Consider It
For many years, a person with a life insurance policy who either no longer wanted it or could no longer afford it had just two choices: surrender it or allow it to lapse. Now, you have a new choice available. Life insurance settlement options allow you to sell the value of the policy and get cash straightaway. You can use that money for any purpose you desire.
The Two Options for a Life Settlement
You might be surprised to discover that there are two options for settling your life insurance policy. The first available option is selling a portion of it and retaining a part of the coverage. In some cases, you could eliminate the monthly premium by selling a majority of the policy’s value. The second option is selling the entire policy as a single life settlement option. You would get the value of it in a cash payment.
Reasons to Consider a Life Settlement
People have a variety of reasons for considering life settlements. A common reason is that the coverage is simply no longer needed. Perhaps your debts were paid off years ago, you have a tidy sum saved for retirement, or you no longer have dependents who rely on your income. You might also consider going through the settlement process if the premiums for the insurance policy have increased so much that they are no longer affordable with your current level of cash flow.
How a Life Settlement Could Help You Today
When you settle your life insurance policy, you will no longer have to worry about how to pay the monthly or annual premiums. If you were strapped for cash each month, this will give you more wiggle room for unexpected expenses. Perhaps your home needs a repair. The up-front cash settlement or fixed amount settlement option would allow you to take care of the repair without needing to borrow money or deplete your bank account. You could also use the money for a fun vacation or leisure purchase. Now that you know how the process of life insurance settlements works, you can decide if a life settlement is the right choice for your financial future.