Life circumstances change and a policy that once worked well for your circumstances might no longer fit your needs. For example, maybe you purchased the policy when your children were adolescents and they are now middle-aged and earn a decent income of their own. You could struggle to fit the premium payments into your monthly budget and would prefer to benefit from your policy’s value now instead. Or maybe you simply want to have additional money to fund your retirement or pay off existing debts.
An immediate payout can also give you the cash you need to pay for medical expenses, long-term care, or something more enjoyable such as a vacation or starting a business in retirement. Whatever the reason, when you receive the funds from a life settlement, you have the freedom to use the money however you choose.