If you are considering a life settlement, you may have a lot of questions about where to get started, how to complete the process, and what it will mean for your future.
Highlighted below are the four things you should know about life settlements before you dive into the process.
A Life Settlement is a Transaction
Although a life settlement can feel like a complicated affair, it’s really just a transaction between you and a third-party buyer.
You, along with your life settlement broker, will find a life settlement provider who wants to purchase your policy.
Once that happens, they will purchase the policy and you will receive an immediate cash payment for it. It’s that simple.
You Will No Longer Be Responsible for Paying Premiums, But You Will Not Get Death Benefits
This may sound a little bit scary, especially if you want to leave some money to your descendants, but with a life settlement, you will get an immediate cash payment upon selling your policy and you can allocate that sum of money to your retirement and beyond.
The company that purchases your policy will receive the death benefits, but not until long after you have enjoyed the retirement that a life settlement will award you.
If your Policy Has Become Too Expensive, a Life Settlement is the Best Option for You
Many people who have reached retirement age have realized that, without an income anymore, eliminating unnecessary expenses has become an important step to enjoying the years of relaxation they worked so hard for.
As the world becomes more expensive, many retirees have found themselves struggling to make ends meet on their monthly pensions and have started to get rid of payments that they can no longer afford.
One of these common unnecessary expenses is a life insurance policy monthly premium. If you are a retiree who is looking to spend a bit less each month, you may be in a position to sell a term life insurance policy through a life settlement.
A Life Settlement Can Help Increase Your Retirement Income
As mentioned above, a life settlement cash payment can give you an instant financial boost in your retirement.
After a life settlement occurs, you will receive a one-time cash payment that you can use to enjoy your retired life.This money could mean the difference between a staying home or going on that big vacation you always dreamed of.
If anything, it will ease the burden of certain living expenses, so that you can focus on savoring your golden years.
Summing up
This has been a brief overview of the key things to think about before you commit to a life settlement.
If the thought of receiving a little more cash for retirement appeals to you, and you don’t feel like you need to pay an insurance premium anymore, this could be your chance to reach out to a life settlement broker and see if you qualify for a life settlement.