Life insurance settlements are great financial tools for senior citizens. In order to qualify for these settlements, however, you must meet certain criteria. For example, the most suitable candidate for a life settlement will ideally have a life expectancy of no more than 20 years. And of course, the value of an individual’s life insurance policy must meet or exceed $50,000. These list only a couple requirements used to gauge eligibility for a life settlement.
Why do most insurance holders seek out life settlements? Typically, they fall into one of the following scenarios:
- Their spouse has passed away.
- A prized employee has left their business or firm.
- They lost a valuable business partnership.
- They have outlived their guaranteed number of insured years.
These aforementioned scenarios have several common factors. They all reflect a negative, financial dynamic or change. In other words, when financial circumstances have changed for a senior citizen with life insurance, they have no choice but to take up a life settlement. This, however, should not be perceived as a last resort, but rather, a solution.
Life settlements have innumerable benefits and they serve as indispensable assets that one can use for a variety of different purposes. Using this financial tool, you can exchange a policy for a cash settlement instead, obtaining the money you need for a variety of different life expenses. This course of action would certainly be understandable in the context of a changing financial situation. With the security of income from a spouse, key employee, or business partnership, life may become unsustainable.
Sometimes, life insurance payments can be cumbersome and virtually impossible to pay off. So, instead of living in a state of financial unrest, make the right decision. Sometimes, life insurance policies fail the expectations of their holders. But a life settlement can give you the security you need. Remember, if you have incurred a significant amount of debt, creditors or debt collectors may garnish this settlement.
A life settlement can help you cover medical expenses, bills, and much more. If you are over-insured, an insurance policy may not be necessary. Furthermore, if your children have reached a fairly mature age, they may be old enough to support themselves without this additional protection. Life insurance protects your loved ones from the astronomical costs of planning a funeral, and other death-related expenses. However, this protection is not necessary if your spouse has passed away, and your children are well into adulthood.