Friday, August 15, 2014

To sell or not to sell your Life Insurance policy...

NEVER let a Life insurance policy lapse or surrender one without considering a life settlement first. A life  settlement will ALWAYS yield more cash than lapse or surrender.  

Reasons to Sell Your Policy…
Only when the life insurance policy it no longer meets your needs.
( Most people buy life insurance for income protection—they want to protect a loved one (or themselves) from financial need in the case of the insured’s death. The most common reasons for a life settlement are that the insured person has outlived the beneficiary, or the beneficiary has “outgrown” the need for insurance
protection. For example, a husband may take out a policy on his own life and name his wife as the  beneficiary. If his wife dies first, his life policy may be unneeded. Or a mother may take out a policy on the life of the father of her children, and name the children as the beneficiary. If the children achieve financial independence, the policy may become a burden instead of important protection.

Reasons Not to Sell Your Policy...
The number one reason for not selling a policy through a life settlement is that the policy owner continues to need life insurance, but cannot obtain replacement insurance due to advanced age or poor health. There is no true substitute for life insurance. If you need insurance, either don’t sell your policy, or consider ways to sell only a portion of it.

In general, a life settlement may be a good option in any case in which you would prefer to have cash now instead of a death benefit later.

Give me a call if you any questions or would like to learn more about Life Settlement Polices

Michael Fillers

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