Life Settlement Companies
Seniors who struggle financially should consult life settlement companies through which financial support can be gained. A life settlement is essentially the amount of cash that is left over when a life insurance policy is sold on the secondary market. Companies that specialize in life settlements are run by experts who are able to give senior citizens advice on potential benefits and advantages that are available through a settlement as opposed to the disadvantages through a sale or cancellation of an insurance policy. Companies are able to help provide an adequate level of financial security in the final years of life, "I will both lay me down in peace, and sleep: for thou, LORD, only makest me dwell in safety" (Psalm 4:8).
Several life settlement companies have been established for the express purpose of providing financial aid for senior citizens. In order to qualify for a policy there are a few requirements that must be met. First of all, those who wish to apply must be at least sixty-five years of age or older due to the fact that such policies are intended for the elderly. A policy holder must be certain that the plan will be active for at least two years. The market for life settlement companies is relatively new. In the past there were generally only a few alternatives available to choose from in the event that a life insurance policy was not necessary or desired. The original options were to either allow a policy to come to an end, or else to go through the steps required to cash in a policy or plan. Those in need are fortunate now to have a third option available which is to cash in a policy with the added ability to get back more money than was otherwise possible.
There are many reasons why seniors might look towards life settlement companies for aid or to extend their knowledge base in financial matters. One of the most obvious reasons for people to choose a settlement is in the event that a spouse passes away, or that a holder of a policy dies. In the case when a policy holder dies, the family or beneficiary should seek assistance in resolving financial matters that come with the closing out of a previously held policy. Another reason for why many look into the process is perhaps because a current plan's premiums have become unaffordable or the plan is simply failing to perform to satisfactory standards. Occasionally, a person will decide to apply for a life settlement due to the fact that they are living longer than expected. In the case that a person needs money for emergency purposes, such as for the payment of bills, the money gained through such a plan can be used to supplement specific areas. Settlement plans can help to enhance a senior citizen's quality of life. Many more reasons exist for why the choice might be made to go with a plan, all of which depend on the individual in need.
Seasoned citizens who desire to look into different options for cashing in on specific policies should talk to professionals about several different life settlement companies. Many benefits can result from the choice to incorporate a settlement due to the fact that more money can be gained in a secondary market than can be gained from any other sort of plan. The extra money can be put to good use in the area of the holder's choosing. Other advantages include the ability for the holder to eventually be placed in a position where they are financially able to gift sums of cash to family members, and in some cases, the ability to give substantial donations to charities or other non-profit organizations of choice.
Before the decision is made to cancel an insurance policy for a settlement plan, a senior should consider the available options. In fact, a policy should not even be allowed to expire without one or more life settlement companies being consulted for advice. As much information as possible should be gathered by individuals before a choice is made that could drastically change a person's financial future. Seniors who are interested in the policies should take advantage of resources and tools available to find information on different companies and policies. The ability to speak with an expert in the field should not be taken for granted, and most companies are able to put people in touch with professionally trained individuals that can assist with any problems, questions or concerns that may arise.
The elderly would be wise to research the various plans that are available. Hundreds of financial and insurance institutions have sites on the Internet which can easily be accessed by all. Web sites can be found that describe exactly what can be expected from life settlement companies, and offer insights into various methods and plans that can help to fit the unique needs of every individual. Most offer information on how to contact professionals in the field for those who feel more comfortable talking to a person rather than having gone about the process via electronic means. Seniors who require aid need not look too far as plenty of resources are available that offer advice that is straightforward and applicable to most situations. Decisions made concerning financial matters should be taken seriously and no choices should be come to without consideration of different plans and options offered by various life settlement companies.
Life Settlement CompanyWorking with life settlement companies can help individuals who are seeking to exchange a viable life insurance policy for a lump sum payment. Often, policyholders who are nearing retirement years or who are in need of funds for other purposes will seek this financial option. In most cases, a seller must be at least sixty five years of age or older. The life expectancy for individuals who wish to sell off a policy will generally be somewhere between two and eighteen years. If the face value of the coverage is too low, there is usually not a market for this policy. Generally, policies with a face value amount of less than one hundred thousand dollars can not be offered for sale. In addition to face values, there may be other stipulations that apply. In most cases, a policy must have been in force for at least two years before it can be offered for sale. There are many different types of coverage that may be eligible for sale. Such categories may include term insurance, survivorship policies, variable policies, and universal and whole life coverage. Upon completion of a sale between a policyholder and life settlement companies, a seller will receive an agreed upon lump sum payment. This lump sum payment will be less than the face value of the policy. In exchange for this payment, an investor will receive all rights of ownership to the policy. Of course, this means that the investor will be also responsible for making all premium payments. At the end of original policyholder's life, the investor will be the beneficiary of the policy.
There are also transactions called viatical settlements that operate in a slightly different way than the more basic transactions with life settlement companies. Viatical transactions generally involve policyholders who are facing a terminal illness and have a limited life expectancy. Usually, the health of the policyholder will have deteriorated since the original coverage was purchased. The word viatical is derived from a Latin term. Via tecum refers to making preparations for a journey. While this description may seem somewhat poetic, the situation can be a delicate one for both the individual policyholder and life settlement companies. However, if a policyholder finds themselves facing mounting medical expenses, such settlements can provide a solid answer to a serious financial dilemma. A broker can act as a liaison between the insured client who is seeking a settlement and the investors or institutions that are interested in purchasing insurance policies. Anyone who is in the market for such settlements will want to consult with a number of professionals before moving forward with any transaction. Speaking with an accountant or an estate planner may be a good place to start. These professionals can advise a client on all of the options that may be available to them. A meeting with an insurance agent is advisable as well. An experienced agent can help a client to fully understand just what rights and benefits they will be surrendering as well as advising them on the type of transaction that would best suit the client's needs.
If a policy has a cash surrender value attached to it, the lump sum payment that is offered by life settlement companies will usually exceed the surrender value of the coverage. There can be a number of reasons behind seeking a settlement transaction. If an insured individual feels that they no longer need the coverage, this can be a strong motivating factor. For some retired individuals, keeping up with the high cost of premium payments may have become impossible. Rather than letting a valuable policy lapse, seeking the help of life settlement companies may be a good solution. For some policyholders, a spouse and beneficiary may have preceded the potential seller in death. When this is the case, there may be less concern about leaving a large estate behind. Selling off a policy can provide needed financial assets in such cases. Most of these transactions will also involve a number of fees and commissions, particularly for professionals who negotiate the terms of these settlements. An explanation of all fees and charges should be provided. The factors that determine the amount of money that a surrendering policyholder will receive can include age, amount of coverage, type of policy, the health of the insured individual, and the cost of premiums.
There can be many benefits that are associated with working with life settlement companies. Understanding the different terms and options that accompany these settlements can be confusing. In addition to company representatives, policyholders can also benefit from securing the services of an independent insurance representative who can look out for the interests of the seller in this process. Having the help of a knowledgeable professional in the field who can guide a client through every step of the process can be very valuable. The Bible describes the kind of support that believers can provide for one another. "Two are better than one; because they have a good reward for their labour." (Ecclesiastes 4:9)
Anyone who begins negotiations with life settlement companies may wish to inform any survivors of this decision. If provisions have been made for heirs and final expenses, the choice to enter into such settlements should not be a controversial one. Of course, if there is concern that some survivors will object to the transaction, a seller can certainly move forward with an assurance of privacy on all details. When other options have been explored, selling off unneeded life insurance policies may be a very wise option.