After years of payments, seniors are opting to sell life insurance policies to purchase more affordable protection. For many, buying a policy can be an expensive waste, and the price tag varies dramatically. Factors such as age, length of coverage and certain protections drive up the premiums. According to AARP, certain states are allowing premium price-hikes that can nearly double.
A forgotten strategy that is making a comeback is cashing in life insurance policies to life settlement, and then purchasing a burial plot. Burial plots are sold for less than $5,000. Seniors are learning this is one of the smartest retirement moves that eliminate expensive premiums while ensuring a proper burial.
Unfortunately, many seniors are finding themselves in tough economic discord, leaving very few options. Many people are allowing life insurance policies to lapse because of the inability to pay high premiums. A policyholder can sell an old policy for a greater sum than the surrender value.
Of course, many people do not fall into that category, but is your policy really benefiting you? Plenty of retirees mistakenly believe they are fully covered, yet they end up short when an unexpected burden befalls them.
Surrender Life Insurance to Maximize Your Retirement
Seniors have their retirement all mapped out, only to learn insurance policies were never one-size-fits-all. Who knew health care would skyrocket and most seniors would end up requiring benefits they never had. Almost 70 percent of Americans over the age of 65 require some form of daily assistance, yet they do not have the correct benefits. Another reason people are seeking the assistance of life settlement companies is to cash-in policies and purchase long-term care insurance.
Long-term care insurance offers daily assistance for those who need help remaining independent. It also provides medical and nursing care in assisted living homes. More importantly, long-term care insurance provides better options to seniors.
Considering Cashing In Your Policy
Insurance settlements are suitable for many groups of people who are eager to get their money now and utilize those funds in a more appropriate manner.
- Seniors who are desperate for cash and have no other options can sell their policies
- You need to eliminate the monthly premium costs
- You have a terrific deal to purchase a burial plot and have cash-in-hand leftover from the sale of your policy
What’s the point of having a policy and paying those increasing premiums if the policy doesn’t provide everything you need? Opting to sell life insurance policies is one of the smartest retirement moves seniors can make.