In the most general of terms, a Life Settlement is the sale of a life insurance policy by a Senior Policy Owner for a cash settlement. Seniors, aged 70 and older, often find that life has become expensive – Between house/apartment payments, food, credit card bills, health insurance, and life insurance, there is just not much money left at the end of the month. As a matter of fact, in many cases, due to challenging expenses, Senior Policy Owners have let their life insurance policy lapse – this is unfortunate because with a life insurance policy – an “in-force” life insurance policy – this is an asset that may be sold for cash. On top of this, the life insurance policy in a Life Settlement typically sells for cash at a value much greater than the specified life insurance policy “surrender” value offered by the Insurance carrier.
So, for those that have taken advantage of the sale of their life insurance policy in a Life Settlement, we’ll share some common uses of their Life Settlement and review eligibility criteria for your Life Settlement.
Seniors use their Life Settlement to do many things. An important note is that you are free to do as you wish with the cash received from your Life Settlement. The payout is not limited to certain products or services. Here are some of the common uses:
- Long-term Care (LTC) – Many Seniors use their life settlement to pay for long-term care options. Long-term care is expensive and requires up-front money. Selling your life insurance policy is a way to plan for these costs. Buying Long-term care allows for coverage of the house/apartment payments as well as the utility bills. The only housing bill you pay is to the LTC facility.
- Paying Debts – Credit card debts, student loans, and other large debts can follow you throughout your life. Paying off these debts can take a load off of your mind and your wallet while maintaining your freedom of choice.
- Improving Healthcare – With the access to extra cash, you can afford better health care. You no longer need to be afraid of going to the doctor because of the costs.
- Personal – It’s your money and some Seniors decide to spend it on moving to their dream home, fixing up their current home, going on a vacation, and other personal purchases that were just too expensive to afford without the life settlement.
Life Settlements are highly regulated and have defined waiting periods. The vast majority of States in the United States have a 2-year waiting period; however, the full list of States and their regulations may be found here. When you take our online questionnaire, you’ll be asked a series of questions and we will tell you about the eligibility requirements based on your information. For those seeking how Life Settlements work – click here, and if you are seeking additional answers, feel free to click here – to use our Contact Us form.