A life settlement is when you sell your life insurance for more than the cash value instead of just lapsing, canceling, or surrendering your policy. If you find your premiums are getting too high, you no longer need your life insurance or you do need cash to pay for the ever increasing costs of assisted living, a life settlement may be a good option. The purpose of this site is to educate you on the value you may have in your life insurance policy and to prevent consumers in general from just throwing away these valuable assets. Discovering hidden value in your life insurance policy starts with doing your homework. Get the value of your life insurance policy as a life settlement with a life settlement appraisal.
Depending on your health and age, you may be able to use your life insurance's death benefit to get a loan or a line of credit allowing you an immediate cash advance before you die. Often there are no loan payments, premium payments, or interest to be paid while you are still living. Loans are sometimes possible even if living benefits or accelerated benefits are not an option in your case.
A viatical settlement involves the sale of your life insurance policy once you have become chronically or terminally ill. a viatical settlement broker such as Life Settlement Appraisal has a fiduciary responsibility to you, the viator. Viatical brokers should shop your insurance policy to the highest bidding viatical providers that are licensed in your state.
A Medicaid Life Settlement is converting a life insurance policy for a pre-paid, Long Term Care Benefit Plan that covers the monthly burden of high care costs. A Medicaid Life Settlement is a unique financial option for seniors because there are no wait periods, no care limitations, no costs to apply, no requirement to be terminally ill, and there are no premium payments.
Life seldom works out as planned. A life settlement provider may be able to help you convert your life insurance policy to cash. Life settlement providers are companies, or sometimes individuals, who operate in the secondary market for life insurance. You should not confuse them with life insurance companies. They are in the business of aggregating and buying policies and do not have any fiduciary relationship with their clients.
Life insurance settlements are a way to monetize a life insurance policy that is no longer wanted or needed. There are tax implications that must be considered. The ability to enter in a life settlement agreement has been legal for over 100 years. It was almost a well-guarded secret, as insurance companies would rather pay the insured the cash surrender value of his or her life insurance policy rather than the full face value to an owner not related to the insured. This is a financial decision by the companies. By being silent about life settlements, they encouraged people to either abandon their policies or cash it in for face value only. This is good for an life insurance company’s bottom line.
Life settlements bring together a willing seller and a willing buyer. As the policy owner, or seller of the life insurance policy, you know exactly what you are getting. When you negotiate and agree to a settlement with the life settlement provider, you receive an agreed amount in the form of a single lump sum. As the buyer of the policy, a life settlement company is making an educated guess on the rate of return they will realize when the insured dies and they can collect the death benefit.
Life insurance can be a much needed source of money when you are in your twilight years. Viatical settlements and life insurance loans are two available life settlement options. Learn the similarities and differences when comparing viatical settlements and life insurance loans.
