POLICY TRADE FOR A PAID UP DEATH BENEFIT
Trading in your existing policy for a fully paid up guaranteed death benefit.
Life insurance policies are one of life's many necessities. But even so, regularly paying for its premiums can be too much of a burden to its owners, especially if the life insurance policy is relatively expensive due to unfavorable underwriting or a higher than appropriate death benefit. Senior citizens who still hold life insurance policies taken out when they were younger to provide a windfall for their family should the unexpected may no longer have a need for the high amount of coverage or find that the premiums have become too expensive may have other needs for the premiums paid to the life insurance companies such as rising medical costs.
When facing financial problems in a situation such as this, senior citizens usually end up returning their policy to their insurance carrier. Every permanent policy (such as Whole Life, Universal Life and Variable Universal Life) comes with a cash surrender value, which is the amount insurance providers are willing to pay to the insured should he wish to return the policy to them. The amount is usually dependent upon the total premiums paid by the insured and the interest it accrued after the cost of insurance has been deducted from the "account".
Sometimes, senior citizens are left with no choice other than surrendering their policy to its respective carrier, just to free them from the paying the monthly premiums. And most of the time, they use the money saved to pay medical costs or buy another cheaper policy, which is usually extremely lower in value. But even so, there's no guarantee that they can get a fully paid-up plan coming out of the cash surrender value given to them.
Then in comes life settlement. Life settlement provides seniors citizens with the better option when it comes to acquiring money out of their existing life insurance policies. Currently, there are a number of life settlement providers operating today, and some of them are offering insurance products on top of buying insurance policies from the insured for a cash lump sum.
There are a handful of life settlement providers that propose a policy exchange to a prospective seller. The seller can opt for a fully paid new insurance policy in exchange of their existing one. As such, they don't need to pay any more premiums and still get adequate coverage for their life. This easily relieves them of the need to pay monthly fees to their insurance provider. Instead, they can use the money for more important things. And depending upon the total net worth of the policy, sellers can possibly get a considerable sum out of their policy still. And that amount is usually paid in cash, which they can use for any desired purpose.
Life settlement providers have the ability to provide the insured with a free plan in exchange of the one they are still paying for. This is an attractive option for senior citizens who find insurance premiums as a burden on their finances. Life insurance providers understand the need of older individuals for coverage despite no source of current income other than their savings and retirement. This, coupled with the rising costs of insurance and health care, can leave a senior citizen struggling with finances up until the very end.
The solution: A paid up policy exchange through a life settlement transaction.