Is it possible that your life insurance company does not advertise senior settlements or life insurance? They are best to not say anything because it is less expensive for them to offer the senior settlement option. What is a senior settlement? How can it be beneficial to you?
A senior settlement is also known as a “life settlement” and it happens when your life insurance policy is sold to a third party like a bank, or other financial institution. These life settlements are nothing more than lump sum insurance settlements. Someone pays you for the death benefits that your beneficiaries would receive if you die from your life insurance company. Only you can get this money while your still alive. Are you still confused? Senior settlements can be confusing until you realize how simple they really are.
A company or individual investor pays a portion of the death benefits your beneficiaries would receive if you died. Because they wouldn’t make any money from it, they can’t pay you the same amount as your heirs in normal life insurance settlements. These companies and businesses will continue to pay your premiums until your death. They are betting on your life expectancy so the lower the percentage they will pay for your total death benefits, the younger you become. What is the point of this? Why would you consider receiving less death benefits for those who have paid life insurance premiums over so many years?
Many of us purchase life insurance when our financial situation is less stable. As we get older, life insurance becomes less important because we are better equipped to manage our finances. Your loved ones will have less to worry about after our death. Therefore, you might consider “cashing in” your life insurance policy. A senior settlement will usually pay you more in surrender value than the life insurance company. The reason is that, unlike life or senior settlements, the insurance company will not surrender any money you have paid in premiums, but they will likely not return any interest earned on your premiums over time. However, a senior settlement will give you some of the money, and it will almost always be more than what a life insurance company pays.
Senior settlements may not be right for you. A senior settlement is a good option if your life insurance policy has become outdated. It can also be a great way to increase your retirement savings or to save more money for your future. Life settlements for seniors aren’t as complicated as you might think. You will be able to make better decisions than if your life insurance policy was cashed. You might be surprised at how profitable senior settlements are compared to life insurance surrender values. Just like all your other investments, make sure to know the true value of your life insurance before selling.
