6 Reasons Why Life Settlements Are On The Rise
Life settlements offer seniors an alternative when they need to get cash from their life insurance policies. Unlike a loan or other transaction, with a life settlement, the policy is sold, and the former policy owner receives a one-time cash payment for less than the actual death benefit.
If you are interested in a life settlement, here’s how it works: The life settlement provider will put a price on your policy after evaluating your health, age, the cash value amount, and many other aspects. This price will be less than the death benefit amount that your beneficiaries would originally get after your death. However, the price that you will get if you sell your life insurance policy to a life settlement provider is much higher than the amount that you will get if you surrender your life insurance to your insurance company.
Life Settlements Can be a Smart Decision
Today, people are more positive about life settlements due to various reasons. The sale proceeds can help you get money for medical expenditures when you’re in need. In such cases, you may want to sell your life insurance policy to a life settlement provider and make use of the money for your treatment.
If your family is capable of caring for their own needs, you may not wish to keep your policy in force any longer. Instead you can sell it and gain the sale proceeds to help with your current expenses.
Let’s look at even more reasons why life settlements are on the rise today:
Increased Divorce Rate
It’s very common for people to list their husband or wife as their beneficiary. If your beneficiary is your spouse and you’ve gotten divorced, there’s no point in sustaining the insurance policy. If you can’t change the beneficiary, you can sell your life insurance policy and use the money to sign up for a new policy.
The Rise in the Premium Amount
Increased premiums when you cannot afford to pay for them makes things worse. In situations like this, you may be tempted to let your policy lapse. The better decision would be to sell the life insurance. Then you can get something for all the years you paid in.
Some Older Seniors No Longer Need Extra Coverage
Some older seniors prefer to not have extra coverage and many of them like to have some money in their accounts as security. Not everyone gets the benefits of pension plans since the rules and regulations related to these differ according to what sector the person has worked in. If you worked in an unorganized sector or you are an entrepreneur who suffered a huge loss, you may want to have some money saved for emergency expenditures. If you feel that your family is well off and they can take care of themselves, you can sell your life insurance and live off the sale proceeds.
Better Pension Funds
For those who are entitled to good pension funds, life insurance policies may seem duplicative. If you have enough savings to take care of you and your family after your death, you really don’t need the insurance. You can always sell your life insurance policy and use the money to invest in something else.
People are More Aware of Life Settlements Today
Life settlement companies aren’t a new concept. They have gained in popularity in the past few years, due to a variety of factors. One of these is that seniors today need more choices to help them manage finances in retirement. For some people, a life settlement can be the answer.
If you would like to learn more about life settlements and to get a free, no obligation cash price for your policy, contact Harbor Life Settlements today. Call (800) 694-0006.