Life settlement transactions can be a great help for retiring individuals in many ways. life insurance settlement calculator can be used to sustain living expenses upon retirement, invest in new business ventures, and more.
Listed below are a few of the many benefits you can get from selling your life insurance policy.
- It provides immediate cash.
A life settlement is one of the easiest ways for retired people to get quick cash, hence why many resort to this option.
A life settlement can be used to help with unanticipated expenses and it is also enough to sustain your needs through your remaining years.
- It gives a higher payout compared to the insurance policy’s surrender value.
When you choose to sell your insurance policy, you will be paid more than its surrender value. London Business School has found out that a lot of insurance policy owners who have resorted to life settlements have received up to four times more money than if they were to surrender their policies to their life insurance companies.
- It is a better option than failing to pay regular insurance payments.
Life insurance premiums can become more expensive over time. Some people won’t be able to pay it consistently especially if they are no longer working on a regular job.
Defaulting on your insurance payments can result in your death benefit policy to be forfeited. Thus, selling the insurance policy becomes the best decision to make in this situation.
- It can help fund long term health care financing.
The money you can get from a life settlement can be set aside in a separate account to pay for your long term health care needs. This could include in-home care, residential facilities, nursing homes, and more.
- You can use the money for traveling.
It is never too late to fulfill your travel goals. You may have wanted to travel more when you were younger but you just never got the time or the money to do it. Now is the best time to make that dream a reality.
You can allocate a portion of your life settlement proceeds to pay for your travel expenditures such as airfare, hotel accommodation, food, and pocket money.
- Pay existing debts.
Your retirement should be a worry and stress-free phase of your life. If you have a problem with debt, then you are surely not going to be at your happiest. Thus, it is always important to pay your existing debts before you retire. In case you don’t have the money to do that, then selling your insurance policy is the best solution yet.
- You can use the money to buy more practical life insurance.
Now that you decided to sell your current insurance policy because you figured out you no longer need it, you can then use a portion of the life settlement proceeds to invest in new life insurance with a policy that meets your needs.
Conclusion
Aside from all the exceptional benefits life settlement has to offer, it is also essential to take the possible drawbacks into account before making your final decision on whether to pursue such a transaction or not.