Most of us have a Life Insurance Policy. We pay the monthly Premiums and consider it a sound financial investment. And usually it is. In the event of our death, there will be money to pay the tax-man and money to ensure that our family and loved ones will not be left destitute. But sometimes, due to certain changes in your situation, you may no longer need to have a Life Insurance Policy or that particular Policy, and so there is little point in keeping it and continuing to pay the Premiums. So what you can do is let the Premium lapse, which is not a financially smart move, or you can go for a Senior Life Settlement.
What is a Senior Life Settlement?
A Senior Life Settlement involves selling your Life Insurance Policy to a Finance Company or Firm instead of returning or surrendering it to your Insurance Company. The Finance Company gives you a a greater amount than the cash surrender value of the policy. Unless you know much about Finance, you should usually market your Life Insurance Policy by hiring the services of a well-qualified and well-experienced Financial Broker. This way you will be sure to get yourself the highest deal possible for your Policy.
Senior Settlement works like this. The Finance Firm will buy your Life Insurance Policy and thereby own it. It will now be their responsibility to pay the Insurance Premiums to your Insurance Company. As this is in their interest, they will pay your Insurance Premiums and they, not your descendants, will receive the entire Insurance amount due in the event of your death.
Senior Settlement is not limited to a specific age group. But normally you will find more takers for your Life Insurance Policy if you are 70 years old or above that age. You also have to be in reasonably good health to go for this type of financial scheme. You will probably be asked to provide details about your medical history before the contract is finalized.
Why would you want to go for a Senior Life Settlement? What are the benefits?
There are numerous reasons why you might want to sell your Life Insurance Policy:
1. As mentioned before, you may no longer require the Policy. You don’t have any family, friends, or favorite charities to leave money or property to after you’re gone, and so having a Life Insurance Policy is pointless. You don’t need it. And you can use the money you get from selling it to try out all the different things that you always dreamed of doing. Live it up while you still can, you know. That sort of thing.
2. It is no longer possible for you to keep up with or pay the regular Insurance Premiums. Failing to pay could cause the policy to lapse and mean financial loss for you. Selling the Policy before it lapses will be more profitable.
3. You need the money to repay an outstanding debt.
4. You want extra retirement funds to meet your daily living costs.
5. You want to monetarily assist your family. Maybe your kid is going to college or starting a business, and funds are really needed.
6. You need to make a divorce settlement.
7. You want to donate to a charity.
8. You want to try your luck on the stock market.
9. You want to buy a new and better Insurance Policy.
What type of Life Insurance Policy qualifies for getting a Senior Life Settlement?
Practically any type of Life Insurance Policy suffices. So long as you have had it for two years or more and it has a face value of $250,000 or greater. Finance Companies normally do not bother with Life Insurance Policies lesser than that. A great deal also depends on the premium percentage. If it’s very much above 5 %, the offers will be few.
What do you do if you change your mind after selling your Insurance Policy and don’t want the Finance Firm to inherit your dough?
Well, the good news is you can cancel the Senior Settlement contract within 15 days of having received the money. Just make sure this stipulation is present on the contract before you sign it. If you should die within 15 days of receiving the money and there is no statement regarding this eventuality in the contract, the policy gets canceled.
Article Source:- buzzle.com