People all over the country will celebrate Independence Day at cookouts with family and friends or attend patriotic ceremonies. However, in spite of all of the freedoms that Americans have, many of them are hopelessly in debt. Senior citizens especially are feeling the financial crunch of the tough economy. This often prevents them from retiring or paying for financial obligations the way they would like to.
There are many options seniors age 60 and older can take to receive extra cash to care for their monthly expenses or other financial obligations. With so many traditional solutions, many seniors may wonder, what is the best way to sell my life insurance?
Gaining Financial Freedom Through A Life Settlement
A life settlement or asset conversion is a lump sum cash payment given to a person within a reduced time frame after they sell their existing life insurance policy, structured annuity or similar product to a viatical settlement provider. The lump sum is calculated by the estimated rates of return, medical underwriting for the insured, premiums, costs or other charges accrued to maintain the product. After the seller’s death, the life settlement provider becomes entitled to the product’s future beneficial rights.
How A Life Settlement Can Help Seniors Become Debt Free
There are several benefits seniors can receive from selling their life insurance policy
through this process:
*The purchaser of the policy will typically provide a higher percentage of a policy’s death benefit cash value and will take over making premium payments on the plan after the completion of a life settlement transaction.
*Once the purchaser of the policy becomes the policy owner and beneficiary, the seller can use the lump sum payment for whatever purpose he or she chooses. This is especially helpful if a policy is no longer needed.
*The cash received can be used to cover the costs of deductibles and copayments from a health insurance policy or to fund long-term care expenses. In addition, the money can be used to pay off high medical bills or to pay for monthly expenses such as a mortgage or pending debts that may need to be settled quickly or serve as a nest egg for future expenses as the seller grows older.
There is an estimated 10,000 people turning 60 in the United States every day. For them, the best thing they can do is to end their monthly struggle trying to take care of financial obligations. Seniors can now receive a lump sum cash payment through a life settlement. However, in order for seniors to receive payment, they must first meet several qualifications before they can actually become approved. You can click here to find out the process.