Younger people are buying life insurances to secure their and their family’s future. Yet, paying premiums can be challenging, especially after retirement. Many senior citizens face the dilemma of having to return their insurance policies. Or stop paying their premiums. A life insurance settlement can be another option and here’s why seniors should know about it:
What is Life Insurance Settlement?
In some cases, seniors find themselves having to let go of their insurance policies. Many would most likely let it lapse. Others would opt to surrender it to their agency. Now, a better option exists. It lets you sell the insurance to a third party. The third party, like an investor group, will provide cash in exchange for the policy. This transaction is a life insurance settlement.
What Happens After Selling the Insurance?
After completing the sale, the third party will be the new policy owner. They shall continue to pay for the premiums. When the policy matures, the third party will receive the death benefit. In other words, life insurance settlement is the exchange of future insurance benefits.
Is it Exclusive for Seniors?
While it helps seniors at 65 or older, there is no qualifying age for life insurance settlements. Investors choose clients depending on their preferences.
What Makes it a Good Option?
Seniors should consider life insurance settlements due to the following:
For Whatever Reasons, It Pays Cash
There are other reasons why seniors let go of their insurance policies. These are aside from financial struggles. It might be that their spouse has passed away, and there’s no one else to receive benefits. They may also need the cash to fund long-term care expenses, or better, hobbies and travels for leisure. Furthermore, a life insurance settlement can add more value to their retirement fund.
Pays Higher Than Surrender Value
A life insurance settlement pays higher—approximately three to five times than the policy’s surrender value. Moreover, third parties buy both term life insurance and permanent insurance.
Life insurance settlements are another option for seniors. It’s possible if they wish to let go of their insurance policies. Selling their insurance can help them ease current financial burdens. It can provide additional funds to live the rest of their lives to the fullest.
At The Modern Medicare Agency, we put our clients first by offering them policies that they can afford. Having insurance is a necessity nowadays and we’re here to help you out. Learn more about our products and services by calling our agency at (631) 358-5793. You can also request a free quote by CLICKING HERE.