Life Settlements: Unlock the Value of Life Insurance
A life settlement can be a valuable option for individuals who no longer need or want their life insurance policy.
This financial strategy involves selling your life insurance policy to a third party for a lump sum cash payment that is higher than the policy’s cash surrender value but less than the death benefit.
If you have clients over the age of 70 with policies greater than $250,000, here are some important reasons why they might want to consider a life settlement.
- Financial Flexibility: The cash received from a life settlement can provide immediate funds for urgent needs such as medical expenses, debt repayment, or retirement planning, offering a boost to financial stability.
- Policy Maintenance Costs: Life insurance policies often require ongoing premium payments. If maintaining these payments becomes a financial burden, a life settlement allows you to relieve this obligation while gaining financial benefit.
- Changing Needs: As life circumstances evolve, the original purpose of the policy might no longer be relevant. A life settlement can free up capital that can be used more effectively according to current needs and goals.
- Investment Opportunity: The proceeds from a life settlement can be reinvested in higher-yielding assets or opportunities, potentially enhancing overall financial growth.
A life settlement can provide a meaningful alternative for those looking to optimize their financial resources in the face of changing circumstances. Call your Life Sales Specialist for more information.