Life Insurance Settlements

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.