Life Settlements

Many seniors who live on fixed incomes from company pension plans and government pensions are finding it increasingly difficult to manage all of their expenses. While prices are going up, their pensions do not increase at nearly the same rate and as a result they make tough decisions about various things that they would like to have, but no longer can afford. One of these areas is life insurance. Many will allow their life insurance to lapse simply by not making the payments any longer. There is an alternative to allowing your life insurance to lapse. This alternative is known in the business as a life settlement.

A life settlement occurs when you sell your life insurance to an investor who agrees to continue paying the life insurance premiums and will collect the life insurance upon your death. In return he or she will pay you at the time of purchase a life settlement amount, which will be a value less than that of the value of the life insurance. The life settlement amount is determined by a number of factors.

For example, your life settlement amount will be determined by the original amount of the life insurance, your life expectancy, the cost of the premiums, the current and projected interest rates and health of the insurance company that is providing the life insurance coverage. All of these factors are taken into account when determining your life settlement value.
Seniors on fixed incomes can now use this money for whatever they need. In some cases they will pay off medical bills or use the funds from their life settlement to make their lives more comfortable. Others will use the funds to purchase a few gifts for the family or go on a dream vacation. Whatever you use the funds for, this approach is much better than simply allowing the life insurance cover to lapse and receiving nothing at all. You also receive a percentage of the funds now instead of your estate after you are gone.

Viatical Settlements

A Viatical settlement is a unique financial assistance option for chronically ill individuals who have life insurance. The program provides a non binding offer to buy the life insurance policy for a percentage of the death benefit now. Once the offer is accepted the policy owner receives a lump sum now and is also relieved of future premium payments. At this point the policy owner now has a lump sum of cash to use at their discretion and the funding company now becomes the owner and beneficiary of the policy.

Why would someone want to use this service?

When dealing with a life threatening illness it can prove to be very expensive to a family. Life threatening illnesses not only drain someone emotionally, they also can drain you financially. A Viatical settlement offers living benefits from your life insurance and can make the difference in qualify of life for so many individuals. There are thousands of individuals in the United States with life threatening illnesses that let their life insurance lapse because they cannot afford the premiums.

What are the Benefits?

The simple benefit is money to use right now when it is needed. Policy owners often will take the proceeds to pay overdue medical and personal bills, take a dream vacation, enhance their qualify of life, or just to spend more time with their family.

How to qualify?

In order to qualify the insured does not need to own the life insurance policy. It can be owned by a family member or anyone associated with them. The policy death benefit (face value) needs to be over $20,000 and the insured needs to have a life threatening illness.

Again if you are living with a life threatening illness and have life insurance, then this is an option you should consider. This service is something that can help and it will cost nothing to you at all.