Find out about different life insurance settlement options for selling a life insurance policy and how to decide which option is the right choice for your finances.
Most consumers often ask the question, What is a Life Settlement when talking with their broker?Before fully understanding the work of a life settlement broker, a preliminary appreciation of a life settlement itself is necessary. In basic terms, a life settlement involves the sale of a current or existing life insurance policy. The sale is made to a third party. The sales price is a dollar amount set above the current cash surrender value of the policy but below the net death benefit associated with the policy.
As is the case with a considerable number of seniors, you may have reached a juncture at which you can no longer easily afford your life insurance premiums. Many seniors and insurance policy holders often ask how to sell their life insurance policy. In addition, because of your situation, you might no longer have the need for the type of life insurance you purchased at an earlier point in your life. If either of these situations apply to you, consider the benefits of a life settlement.
Life insurance is going to protect your loved ones’ finances in the event of your death, but there may come a point when it is no longer practical to maintain a policy. A life settlement gives you the ability to sell your policy to a third party so that you no longer have to make payments. Instead of letting your life insurance coverage lapse, it could be time to consider signing a life settlement contract.