Are Options Available In A Life Insurance Settlement?

| June 22, 2012

sick in bed

Today, in the real world, a person with a chronic or debilitating illness and short on funds, will often turn to the usual suspects: family members or a close friend. If the persona non grata sign is up, one can still consider maxing out credit cards or getting a bank home equity loan. On the other hand, do you remember that life insurance policy you purchased 30 years ago? Surely you recall the two operative words: “life insurance”; ergo, your life, your insurance, and your money. That could be your financial parachute or “end of the rainbow” pot of gold, and eschew compounding your current debt conundrum with a problematic loan. Getting life insurance settlements is not a “last resort” move; it’s plain and simple common sense.

Seniors are generally the annuitants of life settlement companies proverbial “white flag”, however there are some requirements to know before proceeding to the goal line.

  • Your policy must be at least two years old and payments made on time
  • Whether the policy is whole life, term life, universal life or variable life, they all qualify
  • Your insurance policy must be in your name; group policies do not qualify

By this time we may have caught your interest in considering life insurance settlements, but these final Q & A’s should close the deal. In terms of time constraints, 90 day closing is about right, although it may depend on the state where you live and any complex rules of the game that may pop up. In any event, like most legal matters, paperwork will be involved, so patience is required. After you have finally digested all this information, and checked for all the mouse-print nonsense, you might ask: “why would any person sell their policy to any life settlement companies”? Well, one thought is to provide cash gifts to loved family members; maybe give some to a favorite charity. Making a settlement might also pay for your continuing health care costs or others. Maybe you’re alone and just can’t afford the payments anymore, or you are too proud to allow yourself the embarrassment of surrendering the policy back to the company.

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