If you are a retired empty nester with life insurance, perhaps your priorities have changed, and you would prefer to re-allocate the premium money you invested towards upgrading your lifestyle or pursuing a lifelong dream. Whatever the reason, selling your life insurance policy may be the perfect solution for you. Undoubtedly, taking this step is a big financial decision. So first consider why it would make sense to take the leap.
Life settlements are also known as senior life settlements and for good reason. Seniors can fund a greater quality of life, they can pay off debt, and they can finally start checking off their travel bucket list. Another appealing feature of a life settlement is there are customized options under the Life Settlement umbrella. They include:
If you have decided to opt for a life settlement specifically to pay medical expenses, your best choice would be to opt for a viatical settlement. Both viatical and life settlement firms are responsible for transferring ownership from the policyholder’s third-party buyer. This is particularly advantageous for those that are ill.
Here are the key differences between a Life Settlement and Viatical Settlement:
Now that you know the differences of a viatical settlement, what are the features that are exclusive to this specific type of settlement alone? Here they are:
It is the amount of cash that you can withdraw if you surrender your life insurance policy and allow it to lapse. The amount can vary depending upon a myriad of factors.
The face value of a policy is the death benefit. It is the primary factor in determining the monthly premiums that will be owed.
The cash value is the amount that would be paid if the policyholder opts to surrender their policy early.
It refers to the rider that can be added to a life insurance policy so that the policyholder receives a portion of the death benefit while they are still alive.
It is a life settlement accept that is tailored for those that are terminally or chronically ill.