Life Settlement Process

With health care, long-term care, and living costs on the rise, retirees often find themselves in a situation where they need more money. Here are some of the most common reasons you may consider selling your life insurance policy: 

• You Can No Longer Afford Premium Payments

Depending on the terms of your policy, changes in the insurance market or poor policy performance could drive up the price of the premiums that you pay. Or, you may have experienced an unexpected financial issue—like increased medical expenses, legal issues, assisted living costs, or tax issues. With a life settlement, you can eliminate all future premium payments. 

• Funds Are Needed To Pay For Medical Care Or Some Other Expense

Faced with economic changes or hardships, selling your policy to recoup the equity you have built over the years is a viable option to fund a significant expense. A few examples of these significant expenses could be funding assisted living, cancer treatments, or medical costs or premiums on another existing policy. Pursing a life settlement can free up some money to ensure these expenses are taken care of. 

• You Want To Re-Invest The Equity You’ve Built To Take Advantage Of A Better Opportunity

You may want to recapture the money you have paid over the years into your life insurance policy. Whether it is investing in a business, purchasing a new home, paying off a debt or tax liability, purchasing an income-generating annuity, or taking advantage of another opportunity, getting a life settlement could help achieve these goals. These are all options where the equity built in your insurance policy could better work for you and your current circumstances. 

• Your Life Circumstances Have Changed

Fidelity Investments has projected that a 65-year-old couple retiring today in good health would need $285,000 during their retirement to cover healthcare expenses alone. As we move through the various stages of life, many individuals find they simply no longer need a life insurance policy, or simply want cash now. Life changes such as divorce, retirement, the absence of an estate tax burden, or beneficiaries no longer requiring the policy benefits are potential reasons to consider selling a policy. 

• You Want Supplemental Income for Retirement

According to USAToday, the cost of a comfortable retirement varies from as little as $858,000 to as much as $1.5 million. Selling your policy can be used any way you want. For example, you may want to use those funds for traveling, buying a new house, or other ways that enhance your retirement life. 

• You Need Additional Funds To Afford Long Term Care

All long-term care costs rose in 2020, but assisted living facility costs increased the most. Instead of worrying on how to afford housing care, a settlement can provide you the financial assistance that you need to live comfortably.