Did you know that 500,000 seniors a year will walk away from their life insurance policies? Why? The reason a policy was purchased 10, 20 or even 30 years ago is no longer a concern, or perhaps the premiums are too expensive.
Your life insurance policy is an asset that you own. As such, you can sell it for cash through what is called a life insurance settlement. The amount a policy could be worth is very specific to each client, but policies can be worth tens of thousands or hundreds of thousands of dollars. Here are some real-life examples:
*A 66 year old woman with multiple sclerosis had a $150,000 life insurance policy. Her beneficiary was her ex-husband. She decided selling the policy made sense, in order to give her money for the care needs she knew she would need in the future. The policy was marketed and she sold it for $25,000.
*A 78 year old gentleman had a $250,000 policy. He purchased the policy for his wife, but she passed away 4 years ago. He decided that he wanted to sell the policy to make his life more comfortable. He sold it for $128,500.
*A 66 year old gentleman had a term life insurance policy that was reaching the end of its term. He sold the policy for $75,000. This was great for him, as he was not going to continue the policy.
These are just some examples of clients who were able to repurpose an asset they didn’t know they had, into cash to use however they wanted. So if you are thinking about lapsing, surrendering, or walking away from your policy, considering a life insurance settlement may make sense.