Life Settlements & Changing Circumstances
Let us help you get the most from your Policy.
Why get a life settlement?
Policyholders who wish to sell their policy to a life settlement broker are liquefying an asset. Holders will make more from their policy than surrendering it over to their life insurance policy and obtaining a lump sum known as the cash surrender value.
Individuals can improve the quality of their lives with life settlement amount They do not have to worry about paying monthly premiums or the possibility of lapsing on their insurance payments. Oftentimes, a lapse can lead to a loss of coverage in insurance, thereby rendering the policy null and void. Brokers, like Life Settlements Inc., liberate their clients from having to pay monthly premiums. In exchange, the brokers and policy buyers receive the face value of the policy.
How can a settlement help?
A person with a life insurance policy can take advantage of their asset and be financially rewarded before the maturity date. Life settlements allow the policyholder to benefit from the proceeds while still alive. We hope this article has been helpful in guiding you in why you should get a life settlement.
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.
Top Reasons for Selling
Business / 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.
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.
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.
Terminal / 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.
Liquify Dormant Assets
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.
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.