When you enter into a life settlement agreement with a third party, the seller provides you with money that exceeds the value of cash surrender for your policy but is lower than its face value. Many seniors are finding this to be a viable option to help them finance medical expenses, cost of living expenses, or just to have additional cash on hand for a more comfortable lifestyle.
In June 2017, Florida passed a Senior’s Right to Know law that required life insurance companies to advise clients to consult with a financial advisor or licensed insurance professional when considering surrendering their policy. The purpose of the law is to make seniors aware of alternatives before allowing the policy to lapse. More seniors live in Florida than any other state. As such, Florida has set the precedent that other states will likely follow soon.
Life Settlement Prevent Lapse of a Life Insurance Policy
People with life insurance don’t want to surrender their policy. Especially without receiving any benefits from it. However, they may feel they have no choice if they can no longer afford the premiums or don’t need the policy. Life Settlements give policyholders options.
The standard grace period for a missed payment on a life insurance policy is 30 days. After that, the insurer has the right to cancel the policy and may not allow you to pay back missed premiums to reinstate the policy. That means you receive no benefit from all the payments you have made over the years. If you’re considering allowing a policy to lapse, a life settlement could be a better option for you. This allows you to receive a lump sum payment for your policy and eliminate potentially unaffordable monthly premiums.
Life Settlements Help Supplement Loss of Income
According to a June 2016 study released by Pew Research, more Americans over age 65 are delaying retirement or returning to work now than at any point since the turn of the century. That amounts to nine million Americans past retirement age who still work. A life settlement can help you to avoid the same fate.
Unfortunately, a serious injury or illness after retirement could significantly set you back financially. Medicare and supplemental insurance only pay so much, which leaves you no choice but to pull from your savings account if you have one. When you have little savings or don’t wish to use it, a life settlement can provide you with the funds you need to get through a medical crisis.
Life Settlements Increase Retirement Funding
Maybe you got a late start at saving for retirement or had other expenses you had to meet during your working years. If so, you’re not alone. Over 13 percent of Americans have no retirement savings and all while 42 percent have less than $10,000 set aside. If you find yourself in one of these categories, a life settlement can make an ideal solution. After you accept an offer from a buyer in network with Sell My Life Insurance Policy, you will receive immediate cash for your policy. You’re free to spend the funds however you see fit.
Does Your Life Insurance Policy Qualify for Resale?
Sell My Life Insurance Policy connects people wanting to sell their policy with top industry buyers. We invite you to complete this qualification form to determine if your policy meets the minimal qualifications necessary to sell. If eligible, you will be contacted by trustworthy buyers within our network.