When you take out a life insurance policy, you are preparing for the future — but circumstances often change, and so do your needs for life insurance. When your life insurance policy no longer meets your current needs, it may be time to sell your policy in exchange for cash.
Settlement Benefits Association works with policy owners, helping them sell their life insurance policies. Discover some of the most common reasons to sell your life insurance, then contact us to start an informal discussion.
When you consider selling a life insurance policy, there are two types of settlements:
Other eligibility requirements for these settlements may vary by state, so explore your local guidelines before moving forward.
Every policy owner that arranges a Life Settlement has different motivations. For some, premium obligations are rising and becoming unaffordable. For others, a Life Settlement provides a way to fund expenses such as travel or medical bills. Here are five of the most common reasons to sell life insurance with Settlement Benefits Association.
Your monthly premiums can take up a major portion of your income, especially when moving into retirement and transitioning to a fixed income. After this happens, many people cancel their policy or let it lapse. However, there is a better way to stop premium payments.
You may only get a small cash surrender value from your policy by canceling it. With a Life Settlement, you will receive more than your cash surrender value. In addition, the buyer assumes responsibility for the premium payments.
Perhaps you took out a life insurance policy when you married or had kids. Your loved ones make enough money on their own that they no longer have to be your beneficiary. If your life circumstances have changed and you do not have a beneficiary in need, it may make sense to sell your policy. You will no longer have to pay premiums, and you can share your payout with loved ones.
You likely have bills in addition to your monthly premiums, from home and personal loans to medical bills and car payments. A large lump sum payment from a settlement can help you keep up with these monthly payments or pay off debt.
This reason is particularly common for those interested in Viatical Settlements over Life Settlements. In these cases, terminally ill people can use these funds to help with medical care and other out-of-pocket expenses that health insurance, Medicaid and other types of insurance do not cover.
Even if you do not have a pressing need for the extra money, you may want to consider a Life Settlement or Viatical Settlement. The policy owner is the one paying for it, but typically they do not get to see any of the benefits of their policy.
With a settlement, you can receive a sizable amount that you can then pass on to those you care about. Then, you can see how they use the funds and watch how your inheritance benefits your loved ones.
Taking a settlement for yourself is just as valid as using the funds for the people you love. It is your policy, so you can use your settlement to care for yourself — whatever that means for you.
Whatever the reason for selling your life insurance, Settlement Benefits Association can guide you through the process. From the moment you come to us for your free policy evaluation until you have received your settlement, we can answer all your questions and advise you through negotiations and agreements. In most settlement cases, time is an important factor, and we move through every step quickly until you have the money you need.
Contact us today to see how much you may be eligible to receive by selling your life insurance policy.
Fill out our free policy calculator today to see if you qualify and find out how much you can get for your policy.
