New York Life Settlements
New York Life Settlement are as complicated an issue these days as they are in other states. Countless senior from around the country are realizing that there is a hidden value in their life insurance policies. Through a life settlement, a life policy can be sold to a financial company for its fair market value, rather than the relatively small cash surrender value. Even though this has proved beneficial to many seniors, New York still does not regulate the use of this kind of settlement. Only a viatical settlement, were the owner has a very limited life expectancy, requires this kind of licensing.
The purpose of a life settlement is to allow the owner of life insurance to use the value of that policy as they see fit, just as they would any other asset. This is accomplished by selling the policy to a financial institution for an amount less than the death benefit, but far greater than the mere cash surrender value. This practice is often employed when a new set of senior care requirements is needed. Even with a robust retirement plan circumstances may change the level of senior care required. Long term care needs can often necessitate the need to qualify for Medicaid. When this happens life insurance policies are frequently abandoned in order to meet Medicaid requirement. The use of a life settlement provides another option, allowing the value in the policy to be used to pay for the kind of long term care you would like, from assisted living to at-home care.
Life Settlements and their regulations have changed a lot in recent years. When you find that you no longer need your life insurance policy, explore your options from a trusted source to find out the options you may not know you had.