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Meet Frank, Age 67 with a $250,000 policy.
Frank has been a hard worker all his life. Of the 35 years he's
been married, he has rarely taken a week off to spend time with his
family. He is eager to enjoy his retirement and fund a dream vacation
for his family.
Before Frank decides on a life settlement, he should survey his
options and think about any alternatives for receiving cash. Life
settlements presents the opportunity to save on insurance premiums while receiving a cash sum to pay off debts, medical bills, or fund a happier retirement.
Frank may consider a life settlement to:
- Relieve yourself from debts like outstanding mortgages or business loans.
- Enjoy quality nursing home or hospice care
- Provide yourself with better medical care
- Diversify to your investment portfolio
- Fulfill lifelong dreams now such as a dream vacation
- Award inheritances now or give gifts to family
- Fund a family member's education
- Give greater or immediate independence from government private assistance programs such as Medicare and Medicaid
Enjoy his retirement - Most insurance policies do not have a cash out amount; and if they do, this "cash surrender value" is often much less than if the policy was sold to a third party. Considering a life settlement now can allow access to cash when needed most. This is especially important when his current premiums have become unaffordable or he is experiencing unexpected or unplanned financial hardships.
Provide a cash value from policies originally deemed not to have any monetary value - The most significant benefit of a life settlement is to gain a monetary sum from an insurance policy that is no longer needed or that has either low or no value at all upon surrender.
Determine the true value of your policy by receiving multiple bids on his policy's worth versus just one by the insurer - Frank may be able to sell his policy back to his insurer under certain circumstances, but to truly determine its value, an open bid by multiple parties is necessary. Think about this as trading in a car to a dealer versus selling it to a private party.
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80 Year Old Female