Cash Out Instead of Surrendering Your Life Insurance
When you retire you take time off to contemplate and enjoy your golden years, but in recent years where nest eggs have gotten smaller, loans are harder to get and home equity has vanished. Many people are now opting to sell off their insurance policies. When you encounter a situation wherein you may have to sell your life insurance policy, you may ask yourself, “Can I withdraw money from my life insurance?” and the answer to that is yes, you can; provided you are willing to give up all the benefits that your policy has.
How a Life Settlement Works
People choose to sell their life insurance policies if they no longer want the coverage, or if they find it difficult to pay the premiums. In these transactions, life settlement companies, like Harbor Life Settlements, help arrange the sale of the policies to third parties, who take over the premiums and collect the death benefits when the insured person passes away.
The Advantages Of Selling Your Life Insurance Policy:
In this article, we will go through the advantages that you will benefit from if you sell your insurance policy, rather than surrender it.
The Lump Sum Payment:
Many people are not aware that they can actually sell their insurance policy; there is a misunderstanding that once you buy a policy you are stuck with it throughout your life. But that is not true; your insurance is your property and it can be sold for a lump sum payment. When you sell your policy through a reputable life settlement company like Harbor Life Settlements, you will receive your payment within a shorter amount of time as opposed to other methods of selling your policy; which can definitely benefit your financial situation.
Change in Lifestyle:
When you retire or are about to retire, there are many circumstances that will lead you to sell your life insurance policy. Perhaps there has been a death or divorce, or the fact that your children don’t depend on your finances anymore. Also, if your expenses have gone up and your current finances are not able to match them, this is also a reason to sell your life insurance policy.
By selling your life insurance policy to a trusted life settlement company, you can take care of your outstanding financial debts, pay off medical bills, and enjoy your golden years stress-free. It’s up to you: the proceeds from the sale of your policy are yours to use however you wish.
When you are thinking about selling your life insurance, it’s important to keep in mind your family’s needs. You need to take into consideration if they will require the financial benefits after you have passed away. If your family does not require financial support, then a life settlement may be the right option for you.
Settlement value > Surrender value:
When you sell your life insurance to a third party company, you will get quotes that are higher than the cash surrender value. This is one of the main advantages of selling your insurance policy rather than surrendering it. In recent years, policyholders tend to sell their insurance through life settlement companies rather than insurance companies.
Who can you sell your life insurance to?
Finding a trusted buyer can be tough and complicated. Life settlement companies, like Harbor life settlements, have experts that will help you find the best offer for your policy. Once you have decided on the buyer then the company will take care of the rest of the process and in due time send you the lump sum payment. All this will often take a maximum of two weeks.
It is a safe option to go through a life settlement agency; they don’t charge for their services and are happy to help with their team of experts. Once you find a life settlement company that is trusted you can be assured that they will keep your information confidential and will only offer your policy to the buyer that is most suitable and qualified.
A Life Settlement Can Provide You with Peace Of Mind:
If you are currently in a state of financial distress, you may want to think about selling your life insurance policy. If you are thinking of acting on this decision, you will need to conduct thorough research and seek a qualified and trusted life settlement company.