Consider a Life Insurance Settlement to Fix Your Insurance Woes
Your life insurance needs change as you age. While you may have wanted to protect a growing family when you purchased a policy, it may not meet your needs now. Consider a life settlements investment to help make the most of your insurance dollars. Life settlements involve selling your current policy or policies, sometimes through a broker. A life settlement can help you rearrange your current life insurance situation to better fit your age and lifestyle. Additionally, if your health has changed since you purchased the policy; it may be much more valuable to you in a life settlement transaction.
Senior life settlements are aimed at seniors over age 70. Most buyers prefer candidates who have insurance policies worth more than a certain value; the company may also require the policy to be a certain age. Your financial or estate planning professional may recommend that you take advantage of senior life settlements to avoid steep estate tax payments your heirs might face on the value of your current policy. It may make more financial sense to liquidate your policy through a life settlement and gift your heirs the money before your death.
While a life insurance settlement offers many benefits, the practice is relatively new, as recent regulatory changes have made it financially worthwhile for policyholders to take this step. Make sure to consult with your lawyer and estate planner or financial advisor before taking this step, as it has important implications.
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