Are You a Good Candidate for a Life Settlement Program?

Most people purchase life insurance as an income-replacement tool for their families in case of their demise. Younger parents who have children in the home tend to purchase larger policies. These people understand that their children will still need to go to school, and their mortgages will have to be paid even after their death. But as you age, there comes a time you may consider selling your life insurance instead of purchasing more. These procedures are called life settlements. Are you a good candidate for a life settlement program? Read on for more information.

What Is a Life Settlement?

A life settlement is when you sell your life insurance policy to a company, referred to as a life settlement provider. The life settlement provider pays you and then becomes the policy owner.

The company will make any future premiums and receives the death benefit when you pass. Now that the policy is sold, you have the cash payment to spend as you desire. You can do the following and more:

• Increase retirement funds
• Remodel your home
• Pay medical debts
• Establish trusts
• Take vacations
• Fulfill your bucket list

Since the funds are yours, there are no limitations on what you can do.

How Do You Qualify for a Life Settlement?

The qualifications for life settlement can vary from company to company, but most have the same general guidelines.

You are a senior citizen - Some companies state eligibility starts at 65 while others say 70 or 75. A company may also purchase your policy if you are younger but meet the other qualifications.

You own a significant life insurance policy - The larger your policy, the more likely you are to qualify for a life settlement. Most types of insurance policies qualify. Many companies require you to have owned your policy for a certain number of years. This number varies by state.

You've had a decline in health - Some companies require a terminal diagnosis with a limited life expectancy. Other companies may accept certain conditions without a terminal diagnosis. 

Why Consider a Life Settlement?

There are numerous reasons to consider a life settlement program. Some of these include:

• Expensive policies due to increasing premiums
• Excessive life insurance
• Various expenses need paying
• Medical bills
• Supplemental income
• Cash flow options for your loved ones after your death 

No matter your reasons, a life settlement is an option for your consideration. Call a life settlement provider to discuss the possibilities available to you.