Home
Individuals
Seniors
Attorneys
Accountants
Financial Planners
Real Estate Brokers
Small Business
Contact Us
Fun & Free
Life Settlements Can Be An
Excellent Financial Decision
|
If you let a policy lapse or
surrender it for cash value, you could be throwing money away. If your
policies are underperforming or your estate needs have changed, or
you just need money, a life settlement could be the perfect answer.
What Is A Life Settlement? A life settlement is the purchase of a life insurance policy for a value in excess of its cash surrender value. This is a relatively new secondary market. In the past, these viatical settlements were primarily only offered to the terminally ill where doctors were willing to certify that they would probably pass away in two years or less. Now, however, the rules are much more lenient (See Frequently Asked Questions for more details) and there are many legitimate situations where these life settlements can be wise financial decisions. Examples Of Proper Use This can literally be "found money" for some seniors. Most seniors are unaware that their existing life insurance may be worth anywhere between 10% to 60% of the current coverage amount and therefore many have settled for the cash surrender value or even let existing policies lapse without checking to see what it was worth in the secondary market. Click on the bar below to see one excellent example of someone who almost lost $1,100,000 when he retired from his business and was told to let his "key-man" policy lapse. What Are The Benefits? The funds are not restricted and can be used for any purpose you may choose. Even if you still need life insurance, it can still make sense to accept a life settlement and purchase alternative policies while, in some cases, significantly reducing, or even eliminating, your annual premiums at the same time. Following are some of the situations where others have found a life settlement useful:
How To Obtain An Appraisal Of Value Obviously, since the funding source is purchasing the life insurance policy, they need to make a judgement on the life expectancy of the policy holder so age and medical condition are still relevant and some medical records will be required.(See Frequently Asked Questions for qualification requirements). It is relatively easy to see if this is something that could be of value to you. There are three separate ways you can obtain some additional information and a free non-binding appraisal of the value of your life insurance:
|