Top 3 Reasons to Sell your Life Insurance

admin | December 5, 2013

A life settlement is the selling of a life insurance policy to a third party investor. This transaction is usually facilitated by a life settlement broker. In most cases a lump sum cash payment is then given to the former policy owner while the new owner takes over any premium payments and assumes complete ownership of the policy. Listed below are a few reasons why you or your loved one may want to consider selling your life insurance policy through a life settlement broker.

You can no longer afford the premium payments.Premium payments on life insurance policies can be pretty costly.These payments are based on age, gender, medical history, etc., and therefore differ depending on the person. However as you get older, your payments are likely to increase each year. Because of this,in some cases, individuals find that they can no longer afford to keep up with the payments. As an alternative to having your policy lapse, having a life settlement broker assist you in selling your life insurance policy can potentially save you time, stress, and money.
Your policy is on the verge of lapsing.According to a research-based study conducted by the Insurance Studies Institute in 2010, nearly 40% of seniors over the age of 65 have a life insurance policy that has either lapsed or terminated. A life insurance policy lapses when the payments are no longer being made on the policy. As a result, the insurance company drops the individual as a client, and he/she will no longer receive coverage. After a life insurance policy is terminated, the now uninsured individual, has the option of getting the policy reinstated, however this is most often a difficult process. Other than having a policy reinstated, the only other option there is in maintaining a life insurance policy, would be to purchase a new one, which often means higher rates. With the help of a life settlement broker, a life settlement is an ideal option for someone whose policy is on the verge of lapsing. Not only do you no longer have to worry about paying high premiums on a monthly, quarterly, or annual basis, but you will also receive a cash payment for your policy.
You have a dire need for immediate income.Statistics from the U.S. Social Security Administration indicated that the average American is approximately $47,000 in debt. This is more than the average household income which is approximately $42,000. Because the average person owes more money than they make on a yearly basis, conquering debt can be nearly impossible. From mortgage payments and student loans, to car notes and credit cards, financial debt can become extremely overwhelming, especially as you get older. The cash payout from a life settlement can most definitely come in handy in regards to diminishing debt. Life settlement brokers can help you when you have experienced a divorce, death of a family member or other sudden changes in circumstances may also require an immediate need of funds. A life settlement may just be the answer to your financial problems.

For more information on the potential reasons and benefits of selling your life insurance policy, be sure to contact Genesis Asset Advisors we are one of the leading Life Settlement Brokers and our aim is to find the best possible life settlement for our customers.