Planning for the future is something that many people do especially when it comes to the undesirable thought of leaving behind your loved ones after a long, happy life together. One way that people plan for this type of event is by purchasing and investing in a life insurance plan. This plan will provide your loved ones with a predetermined amount of money in the event of your death. You designate your beneficiaries on the paperwork that you file for your life insurance plan and those people are the ones who receive your money, estate, and belongings when you are gone. Some people go through unique situations where relationships change, or the people that were closest to them pass away before they do and there is a need to make a change in regards to the life insurance plan. If you no longer have someone that you wish for your life insurance plan to be paid out to, then you can choose to go through a process called a “life settlement.”
A life settlement is a legal proceeding where a company purchases your life insurance policy from you. You no longer have to make payments on it, and you get a specific amount of money for the transaction. This is a good option for someone who no longer wishes to leave money behind for someone in his or her life. There are a couple risks involved with going through with a life settlement. The greatest risks of going through with a life settlement include not having control over your plan anymore, the plan can be sold again once it is out of your hands, you can not take the plan back if things change in the future, and not noone in your life will get a payment upon the time of your death. Many times people just need to decide whether it is more important to have the money now or pass it on to their loved ones later. A life settlement is an irreversible action so you have to make sure that you are positive that it is what you want.