Group Life Insurance Policyholders May Qualify For Life Settlements

Life Insurance Policyholders

Often times, life insurance is a complimentary benefit that your employer provides for you and your family. If you are part of a group life insurance plan through your workplace or employer, you may qualify for a life insurance settlement. A life settlement can be slightly difficult to navigate, as there are conditions that must be adhered to in order to reap the full benefits of it (read more about how life settlements work here). That’s why our financial experts in the life settlements industry are here to guide you through the process.

The unfortunate reality is that many people allow their life insurance policy to lapse or decide to surrender it, letting years of monetary investment go down the drain. An increasing amount of Americans are realizing the benefits of selling their unwanted or unneeded life insurance policy, as selling it would supply them with money that they need in order to fund their retirement. This is the case with individual policies, but with group policies, the settlement operates in a slightly different manner.

Many group term life benefits and policies have modified themselves to the changing requirements of the policyholders. Once you approach retirement, the company that has been maintaining the employee’s coverage will usually terminate the policy. Recently, though, many group life insurance policies are allowing employees to opt for a life settlement under certain conditions.

The Benefits of Group Term Life Insurance & Life Settlements

Many group benefits that are provided by employers, provide a death benefit that is equal to, and sometimes one and a half times, the annual salary of the insured employee. When the employee no longer pays into the policy by virtue of retirement, he or she has the option for a life settlement. A study conducted in 2013 discovered that 41 percent of all life insurance policies were actually supplied through workplaces (Source).

When employees opt for life settlements through their group life insurance upon retirement, it can assist them in many areas of life such as:

  • Allowing them to maintain their standard of living
  • Pay off household debt
  • Secure savings for children’s education
  • Supplement your pension

Obtaining life insurance through work is notably beneficial for those who have medical conditions, as they would naturally qualify for a better rate. It also reassures your family that if anything were to happen, they will be protected. This large-scale entity offers lowered coverage costs to each employee, as the rate goes down with the more employees that are covered.

A life settlement will help the insured who are leaving the work environment, take advantage of the cash from the proceeds of selling it to a third-party investor. Always obtain several quotes from various life settlement companies before settling on one: If you are looking for a group life insurance settlement, contact the professionals at Life Settlements Inc. for more information on life settlements.

wizard_ishAugust 24, 2020