A life settlement can be a valuable source of liquidity for life insurance policy holders who would otherwise allow their policy to lapse, or surrender the policy for a reduced cash surrender value. Most people are unaware of the asset that is their life insurance policy. Here are the top reasons for selling your life insurance policy.
- 1. Business or Estate Sale. A policy purchased under a buy-sell agreement or estate liquidity may become unneeded. Typically the business or estate was paying for a policy, and the owner of the policy has liquidated the asset. With the business or estate no longer in the picture the policyholder may not wish to incur expensive premiums each month, especially if they are still relatively young and in good health.
- 2. Exit From Company. Executive and top level staff members of an organization often acquire numerous life insurance policies in the course of operating their company. Following an exit from a company these policies may no longer be wanted or serve their purpose as the key person the policy was designed to protect is no longer involved in the business.
- 3. Diminished Estate Value. This scenario occurs when estate tax passages and liabilities call for increased taxes on estates. In such cases, people are typically reluctant to keep more life insurance than is absolutely necessary.
- 4. Terminal or Chronic Illness. As we advance in age, certain medical conditions may set in that can become quite pricey. Costly medical expenses combined with a worsened physical, and oftentimes financial health, can set in and demand the funds needed to pay for the expenses of daily life.
- 5. Liquify a Dormant Asset. Policyholders may choose to sell their policy for a variety of reasons. Immediate need may call for a cash advance that would outweigh the benefit of letting a policy come to maturity. Some individuals wish to provide prompt assistance to their favorite relative, a charity, or non-profit organization of their choice. Others use the funds to pay debts or get into other businesses that can create alternate streams of capital.
- 6. End Quarrels. If the policy is a part of litigation among partners, and the cause of tension between family members, a policyholder may choose to end the policy early. Ending the policy can be done through a broker who will purchase it larger than the cash surrender value obtained from the insurance company that issued the policy. Those who are beneficiaries of a policy may quarrel amongst themselves, making the policy owner feel as though the people around them may have a benefit from their death. Selling one’s life insurance policy grants one the ability to distribute the cash in one’s lifetime as one so chooses.
We hope these reasons have been helpful in assisting you in finding how a life settlement can help you. When selecting a life settlement broker the most important thing to consider is entrusting a licensed professional that has the financial duty of representing your needs. Over the last decade Life Settlements Inc. has been the number one choice for thousands of policyholders, insurance agents and financial professionals. Contact us today at 1-866-326-5433. Our life settlement brokers and experts are available 24/7 to assist you.