ALL THAT YOU NEED TO KNOW ABOUT LIFE SETTLEMENTS
Most people are not aware of the term life settlements or the perks they bring to your table. But, if you’re planning for a better life (specifically after your retirement), knowledge about ‘Life Settlement’ is a must. So, what is a Life Settlement? It’s the selling of an existing life insurance policy to a third party to get a one-time cash payment, but the amount is usually lesser than the death benefit. Does it sound unfair? No. Because once the policy is sold, the policy owner is relieved of the monthly premium payments. The original policy owner receives the cash payment in a go, and the new owner or the buyer of the life insurance policy continues paying for all future premiums. Finally, upon the death of the life insurance policy seller, he receives the death benefit.
Life Settlements reached the peak of popularity when the AIDS epidemic struck in the 1980s. This was when life settlements gained more momentum, and people started considering it. Since then, it has been helping people liquidate their assets in times of need. You may find the procedure followed in setting up life settlements a bit complicated. But once you’re familiar, it’s as easy as taking a butter bite.
On an ideal note, both parties get the benefit from life settlement transaction. But again, due to consumer’s lack of info and awareness, most of the universal life insurances remain unclaimed. Would you be in shock if you get to know that over $100 billion worth of life insurance policies terminate every single year? Yes, even if it’s shocking, it’s the truth.
While making any move in life, you will think about the benefits you would get before it comes. In this regard, a life settlement can never disappoint you. Moreover, to count the benefits, there are many. As the market has pushed and pulled over these years, most of the senior population is opting life settlement to help them manage major crisis or change, from retirement to see their children enjoying a financially independent life. These perks are undoubtedly unparalleled.
The benefits of life settlements are independent of one’s financial situation. With the gradual increase in consumer education and legal regulations, you have a ‘better than the best’ option that can help you get a greater amount than the cash surrender value.
In this way, seniors who may still have a chance to enjoy life for a few more years, can grab this opportunity and take its advantage to the core. With all the criteria to get a life settlement being met, all you do is sell your life insurance policy, get a good deal, and enjoy the rest of your life.
So, senior life settlements can be an unexpected yet ordinary way to liquidate your insurance policy, organize things for a better future of your family, and a companion in times of need during your later life changes. A companion like this is worth your efforts. The terms and conditions of life settlements may confuse you in the first place but almost all ‘firsts’ seem a bit complicated.
However, for a fact, it’s after all not as intimidating as it seems. Once you do proper research, find a reputable life settlement providing company, and get your facts straight, you can walk through the process of selling your life insurance policy for a good deal. Make sure you go educate yourself about the criteria for getting a life settlement for your life insurance policy, and you’re sorted.