A life settlement calculator is a valuable tool that can give the owner of a life insurance policy a good estimate of how much their policy is worth. Many people do not know the value of their life insurance policy. If you are one of those people and let your policy lapse, you may be giving up a substantial sum of money that you could receive through a life settlement in the secondary market for insurance.
The Value of Knowing Your Estimated Life Settlement Value
You should not assume that just because your policy has no cash surrender value that it is worthless. If you paid premiums for 30 years, shouldn’t that be worth something? Well, your life insurance company might say no to you, but don’t give up. A company that provides life settlements in the secondary market for insurance might say yes.
A life settlement calculator can help you find out if you might qualify to receive a lump sum cash payout for your insurance policy. When you qualify, the amount you can expect to receive will be more than the surrender value (if any) of your policy and less than the face value or death benefit of the policy.
In order to answer the question of whether or not you can receive a life settlement and the question of how much you might receive, your policy has to be valued. It only takes a minute or two in front of your computer to use a life settlement calculator and see if there is hidden value inside of your life insurance policy.
What does a life settlement calculator do?
One thing you do not have to worry about when you use the calculator is getting bombarded with calls or solicitations from companies who want to buy your policy. You are not asked to provide your name, address, phone number or any other personal contact information. The calculator is designed to educate and inform you and not to sell you anything.
Slightly personal information that you do need to supply is your age, gender and state of residence. Your age and gender are required because they help determine your life expectancy. You need to indicate your state of residency because life settlement rules are governed by state and federal law.
Information that pertains to the policy you own is necessary to value your policy and determine the amount of money that you may receive. The most important piece of information concerns your health. Are you having some medical problems or are you terminally ill? You will be asked to provide the name of your insurance company and whether you are the only owner of the policy. After indicating the face value of the policy and any loan that you may have taken out against the policy, you will fill in the box to indicate the amount of your annual premium. If you have a cash surrender value, that number needs to be entered as well. There are a few other simple questions to complete the form and then you press the button to get your answer.
Assuming you qualify for a life settlement, you will be shown a lower and upper limit of the value of your policy based on the information you provided. Also, you will see a number representing the different companies that are interested in making you an offer for your life insurance policy.
Remember, the life settlement calculator only provides an estimate and is not a guarantee of what you will get if you proceed with the process. If you would like to move forward, the next step is to contact a representative of the life settlement company, ask all of the questions you may have, and go over all of the details of such a transaction.