A life insurance settlement is when a 70+ year old has a universal life insurance policy that they no longer need the coverage for, so instead of making premium payments, they choose to sell the policy in the secondary market because they realize that the cash surrender value that is offered from the life insurance carrier is usually 30% less than they are able to get in the marketplace.
It is possible to sell your policy when you are over age 70, and earn a sizable amount of cash for your estate. Many of our clients choose a variety of different things to do with the lump sum of cash they will receive from the life insurance settlement. These include: Taking a special trip they have always planned or buying a unique asset, i.e. second home, boats, a trip around the world. Giving gifts to your children and grandchildren, i.e. pay for college. Purchasing an annuity that pays money over years while you’re alive, thus creating more cash flow. Giving funds to a charity to do good while you are alive. Purchasing smaller and lesser expensive insurance policies if that is what the estate needs.
To find out more information about a insurance life settlement please click on LIVEpdq.