Selling Life Insurance Policy
You may want to reconsider holding on to your life insurance policy if you are a senior. Here are three reasons why.
3 Questions Seniors With Life Insurance Need to Ask
If you’re a senior with at least $250,000 in life insurance, you may struggle to meet other demands of everyday life, like medicine, housing, and food. You may be unaware that selling your life insurance policy can get you the money that you need to retire comfortably with a single life settlement option. You might be able to sell your policy for about 20 percent of its face value. Here are some reasons that selling your policy may make sense.
Do you still need coverage?
When you bought your insurance policy, you may have had a growing family depending on your income. Over the years, those children grew up and became independent. Therefore, you may no longer be supporting anyone but yourself. If you have a spouse or partner, then you may have enough in savings if you sell your life insurance policy that they will be comfortable if something happens to you. For other seniors, the only expense that will need to be covered is the funeral home or burial costs.
Are you struggling to pay bills?
You may have lived very frugally your entire life. Yet, you may find that you are having a hard time paying for the basics because the cost of living has continued to rise. You may still, however, be trying to scrape together enough money to pay for your life insurance. Instead, selling your policy may make sense as it could give you the funds to enjoy your golden years more comfortably.
Do you need long-term health care?
If you are facing a lot of health problems, you might be considering going on a federally subsidized health care plan. But, if you have insurance, it can count as an asset preventing you from getting the help that you need. If you choose to sell your policy, you can often qualify for additional medical benefits. While there are some time requirements, you can also give the money to people of your choosing or spend the money as you desire.
If you are a senior, selling a life insurance policy can make sense because you can spend the money as you desire, give the proceeds away, or get the health care that you need with a fixed amount settlement option.