Many seniors living on fixed
incomes from company pension plans and government
pensions are finding it increasingly difficult to
manage all of their expenses. While prices are going
up, their pensions do not increase at nearly the
same rate and as a result they make tough decisions
about various things that they would like to have,
but can no longer afford.
One of these areas is life
insurance. Many will allow their life insurance to
lapse simply by not making the payments any longer.
There is an alternative to allowing your life
insurance to lapse. This alternative is known in the
business as life settlements.
A life settlement occurs when you
sell your life insurance to an investor who agrees
to continue paying the life insurance premiums and
will collect the life insurance upon your death. In
return he or she will pay you at the time of
purchase a life settlement amount, which will be a
value less than that of the value of the life
insurance. The life settlement amount is determined
by a number of factors.
For example, your life settlement
amount will be determined by the original amount of
the life insurance, your life expectancy, the cost
of the premiums, the current and projected interest
rates and health of the insurance company that is
providing the life insurance coverage. All of these
factors are taken into account when determining your
life settlement value.
Seniors on fixed incomes can use
this money for whatever they need. In some cases
they will pay off medical bills or use the funds
from life settlements to make their lives more
comfortable. Others will use the funds to purchase a
few gifts for the family or go on a dream vacation.
Whatever you use the funds for, this approach is
much better than simply allowing the life insurance
cover to lapse and receiving nothing at all. You
also receive a percentage of the funds now instead
of your estate after you are gone.
Regardless of your plans for your
life settlement, it costs nothing to look into your
options. We will give you an estimate based on an
evaluation of the information you provide to us
about your insurance and your health. Of course this
is an estimate and the actual number will depend on
the final appraisal and value that the investors who
will bid on your life insurance settlement will
provide. Either way it costs nothing to find out and
you can then use this information as part of your
financial planning activity.
Download,
Ideal
Settlement Application (443kb).
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