Have you ever thought about selling your life insurance policy? Life insurance policies can be deemed an asset, but usually there is no specific monetary value attached to the policy. Lately, the question, “Can I sell my life insurance?” has been common amongst seniors looking to leverage their insurance policies for financial gain.
First things first. Selling your life insurance policy means agreeing to sign over your benefit payout to a third party investor, known as a life settlement provider, in exchange for them taking on the remaining payments of your policy. You receive an immediate cash payment, and the investor receives the full amount of your policy upon your passing.
Selling your life insurance policy is a great way to pay for long-term care when compared to accepting the cash surrender value of the policy after terminating it.You’ll no longer need to pay the monthly premiums on the policy, and the influx of cash to pay for senior care will help keep you financially stable.
While paying for senior care is one of the major benefits of selling your life insurance policy, Mason Finance has developed an engaging infographic detailing some additional benefits and statistics to help you in this process.
- You’ll make a pretty penny. 1.1 Million Seniors let their insurance policies lapse, cost accounting them $112 Billion per annum. The average person that sells their life insurance policy receives an upfront settlement of 20% of the policy size.
- Eliminate Expensive Premium Payments. The older you get, the costlier life insurance can become. Selling your life insurance policy will eliminate costly premium payments while also adding some cash back into your wallet.
- Greater Financial Security.. 25 million Americans aged 60 and older live at or below the poverty level. If you are troubled to create ends meet, or simply obtaining by on work retirement, mercantilism your insurance policy can facilitate vastly. It can help supplement your existing retirement income and allow you to live life much more comfortably.
- Treat Yourself. Almost 60% of retirees don’t budget for leisure activities when planning for retirement. You’ve had a life full of hard work and sacrifice, why not enjoy the finer things in life for a change? With less of a need for life insurance, sell your policy and do something rewarding with the cash benefit. For example, you could travel and visit old friends, the grand kids, pay off the mortgage or go on a world cruise etc.
- Pay for medical expenses. The average healthy couple can pay $377,000 on health care in retirement. You’ll enjoy mercantilism your insurance policy to assist buy in progress medical bills, which can assist you maintain the next quality of life throughout your later years. This might conjointly facilitate give you protection against surprising medical expenses.