If you have a policy that you no longer need (or can part with for the meantime), you can go to a life settlement provider and get a lump sum payment in return for surrendering your current life insurance policy, and possibly purchase a new policy when your finances stabilize. What a life settlement does is monetize your current coverage after obtaining the rights to your policy and taking the responsibility of making further premium payments. The money you receive from this transaction can then be used to pay for emergency needs, help you maintain your current lifestyle, and help you avoid selling off other valuable assets for quick cash. While the provider will be the one to receive benefits upon your death, you can always cover all the bases by buying another policy in the future.
How Life Settlements Work
Life settlement providers bridge the gap between the policy seller and the actual buyer. The provider also has the responsibility of ensuring a smooth transaction and a sizeable return for the seller. While outside vendors may be involved in the procedure, the provider is the primary facilitator of the transaction.
Usually the seniors and the retirees take the bulk of the population who are engaged with selling with policies for cash. They have various reasons for considering life settlements, and it all comes down to the need of a quick and large amount of cash. People do this to cover financial debts, for emergency cases like healthcare, to stretch financial options, or just to live and retire comfortably. More often than not, people who engage in life settlements find that the deal is more rewarding than the actual benefits taken from the life insurance policy.
For a settlement provider to accept and work with you, your life insurance policy's value should generally by around $100,000 or more. In addition, they prefer the following types of policies: whole life, universal life, or convertible-term coverage.
The importance of settlement providers
Policy sellers are not usually the ones who handle or facilitate a life settlement. Seniors typically hire professional life settlement specialists after consulting with their own investment advisors. In addition to the lack of expertise or willingness to read up on how to settle a life insurance policy, most retirees do not want to get involved in the nitty-gritty of a policy sale, and may not be entirely confident with what they know and what they can obtain in proceeds should they choose to settle on their own.
Reliable life settlement providers are very important in a settlement transaction. As an investor they give the original plan holder an assessed monetary value of the policy which is larger than any insurer is willing to give out if the seller decided to return the policy.
If you need a sizeable amount of money to cover your basic expenses and help you live a comfortable retirement, you can go for a life settlement which gives you cash in exchange for your policy. If you or your investment advisor still thinks that you still need life insurance coverage, you can always look for appropriate coverage sometime after you monetize your current life insurance policy with a life settlement.
How Life Settlements Work
Life settlement providers bridge the gap between the policy seller and the actual buyer. The provider also has the responsibility of ensuring a smooth transaction and a sizeable return for the seller. While outside vendors may be involved in the procedure, the provider is the primary facilitator of the transaction.
Usually the seniors and the retirees take the bulk of the population who are engaged with selling with policies for cash. They have various reasons for considering life settlements, and it all comes down to the need of a quick and large amount of cash. People do this to cover financial debts, for emergency cases like healthcare, to stretch financial options, or just to live and retire comfortably. More often than not, people who engage in life settlements find that the deal is more rewarding than the actual benefits taken from the life insurance policy.
For a settlement provider to accept and work with you, your life insurance policy's value should generally by around $100,000 or more. In addition, they prefer the following types of policies: whole life, universal life, or convertible-term coverage.
The importance of settlement providers
Policy sellers are not usually the ones who handle or facilitate a life settlement. Seniors typically hire professional life settlement specialists after consulting with their own investment advisors. In addition to the lack of expertise or willingness to read up on how to settle a life insurance policy, most retirees do not want to get involved in the nitty-gritty of a policy sale, and may not be entirely confident with what they know and what they can obtain in proceeds should they choose to settle on their own.
Reliable life settlement providers are very important in a settlement transaction. As an investor they give the original plan holder an assessed monetary value of the policy which is larger than any insurer is willing to give out if the seller decided to return the policy.
If you need a sizeable amount of money to cover your basic expenses and help you live a comfortable retirement, you can go for a life settlement which gives you cash in exchange for your policy. If you or your investment advisor still thinks that you still need life insurance coverage, you can always look for appropriate coverage sometime after you monetize your current life insurance policy with a life settlement.
About the Author:
If you're a senior looking to sell their unwanted life insurance policy, companies like Life Partners may be able to help. LPHI is a publicly traded company located in Waco, Texas.
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