Many People Have Purchased More Than One Life Insurance Policy Over The Course Of Their Lives

Category: Finance, Insurance.

Many older individuals are looking for ways to improve their investment portfolio or need some additional cash but don' t usually have access to large sums of money since they are usually on a fixed income of some type. Many people have purchased more than one life insurance policy over the course of their lives.

If the person is in his or her seventies or eighties or in poor health, he may have, however an important cash asset that he isn' t even aware of. What most people don' t know is that as they age, they don' t have to let these policies lapse if they no longer want them or can' t afford the premiums for them. You can then either use this money to enjoy your remaining years, or to pay, to reinvest medical or other bills as needed. In fact, as you reach your golden years you can re- sell these insurance policies to a third party and make a nice tidy sum of money. A life settlement isn' t for everyone, but for those who qualify it can be a wonderful way to get needed cash and cut down on expenses( by eliminating a regular premium payment) at the same time. In either of these cases, a broker can sell the life insurance policy to a third party for a lump sum of money.

Generally a life settlement will be most beneficial to those who are in their seventies or older or individuals who have a serious illness that will shorten their life span. The policy then stays in effect with the new purchaser as the beneficiary. In the meantime, they take over responsibility for all of the premium payments. They are paying upfront for the policy knowing that some years down the road they will be the recipient of the pay- out. Life Settlements Aren' t Do It Yourself. While many people can help you to do this, there are a, including financial planners relatively small number who are experienced enough to get you top dollar for your life insurance policy. If you are interested in selling an old life insurance policy and getting a settlement for it, be sure to talk to a qualified Life Settlement Broker.

These brokers will often handle nothing but these types of transactions and will be well- versed in the ins and outs of the insurance industry. Some states now have licensing requirements, so check on the laws in your state. Be sure that you are working with a qualified broker by asking about their background, education and whether they keep up to date through continuing education. Membership in the Life Insurance Settlement Association( LISA) is also an indication of experience and professionalism. If it is, he or she can get you thousands or dollars or more for a life insurance policy you were going to let expire. Talking to a settlement broker is the best way to find out if a life settlement is right for you. It's a great solution for getting extra cash where you weren' t expecting it.