Why Seniors Need to Consider a Life Settlement
If you're approaching your 70's and you've been paying monthly life insurance premiums for years, you should consider these reasons for selling your life insurance policy.
Many aren't even aware the option exists, while others may be hesitant to cash in a policy they have invested in for so long. But laws have changed, and more and more seniors are considering a life settlement than ever before.
Here are a few reasons why:
Stressful Premiums
You may have been able to afford your insurance premiums when you were fully employed or making a substantial income.
Whether you’re retired now or just on a fixed income, the tables have probably turned. If paying those premiums is getting you down or your savings is dwindling, you really should consider the benefits of a life settlement.
Why? Because once you receive the money from a life settlement, you're free to use it anyway you choose. Whether it’s to pay down debt, cover medical expenses, or splurge on a vacation, there are really no stipulations as to how the money can be used.
Long-Term Care Expenses
Money from a life settlement can be used to pay for long-term care such as a nursing home or assisted living that medical insurance won’t cover.
While the settlement may not cover the entire cost, it will certainly help.
Besides long-term care, the money from a life settlement can also be used for monthly medical expenses such as paying for medication and co-pays.
Researchers found that the annual medical expenses for someone age 65 and older is roughly $18,000 per person. While Medicare pays the majority of that bill, it’s estimated that roughly twenty percent or $3,600 a year is the senior’s responsibility. For someone on a fixed income, this expense can pose a financial burden.
Although medical expenses vary from person to person, that number will typically rise as a person gets older, only adding to the financial stress.
Deteriorating Health & Life Expectancy
Life expectancy and health status are two things to discuss with your parents as they consider a life settlement. Both play a key role in determining whether it is beneficial for them to sell their policy.
When a policyholder is more medically impaired than the original policy projected, a life settlement is an excellent option. There are some situations, particularly those in which an individual is healthier than anticipated or the policy wasn’t highly rated at the time it was issued, when a life settlement is not the best choice for an unwanted policy.
Credit: Lisa.org (Life Insurance Settlement Association)
Beneficiary No Longer Needs Policy
If the primary beneficiary to your life insurance policy has died or is no longer in the picture, it's possible that the money can be more useful to you. In that case, now is the perfect time to cash in the policy through a life settlement.
If you're still rather healthy and you qualify for a life settlement, perhaps use the money for something they’ve always wanted to do!
Some seniors choose to take their dream vacation or supplement their retirement savings. Since you have paid the premiums for years, you should be able to reap some of the reward so you can live the life you want to live.
Once you've decided that you want to sell your policy, find out if you qualify.
There are certain rules that apply in order for a life insurance policy and its policyholder to be eligible.
Learn How To Sell Your Unwanted Life Insurance Policy For Cash
Your policy must have a benefit amount of $100,000 or more to qualify.
You can get a cash payout from your policy if it no longer serves a purpose for you. Choose a time on Allan's calendar below to get your free phone call consultation, plus get your free guide to life settlements emailed to you instantly.
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