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The ultimate guide to picking the best life settlement

best life settlement

Rather than give over your policy to your insurance company, choose to get a financial reward for outgrowing your life insurance. The money that is going nowhere is still your money, so shouldn’t you learn how to get it back into your hands? We think so. In this article, we discuss how to pick the best settlement plan so that you can do more than surrender your policy. 

Decide if it’s time

You may have outgrown your need for life insurance, but it is not time to ask for cash back if you can’t back-up your policy with an ownership of $100,000. Most companies look for at least this much in an insurance policy to safeguard themselves. Wait until you are at least sixty-five years old before pursuing these matters. This age is the start of one’s identity as a senior citizen, and it is unlikely agents will be able to help you without showcasing that you genuinely have outgrown your need for your policy. 

Find the right people

There are tons of companies out there looking for clients. A settlement plan is not something to deal with impulsively. Ensure that you shop around and honestly consider your options before deciding to work with just any agency that sounds fair. Plenty of companies promise you the moon, but you might end up spending more than you’re fighting to get back from your policy. Avoid falling for these counterproductive pitfalls and choose agencies you can trust to buy Life Settlements

Know your terms

Sometimes agencies will try to get you to settle for a viatical settlement. This is only one kind of settlement, and it might not work for you. The only time you can get a viatical settlement is if the insured person also has some life-threatening and terminal health condition. Even if this describes you, you might not want to resolve your policy through a viatical settlement. There are many different ways to transfer estates, so do not be fooled into thinking this is your only option just because you happen to be sick. 

Life Settlements: Know Your Priorities 

Choosing a settlement plan will also depend on how you prioritize your estate. Do you want beneficiaries to receive your income, or do you want that money right now for retirement or to pay back your debt? You might even have an urgent expense to take care of that your policy money could go towards. There is never a time to stop putting you and your life first, so be sure you are making choices that reflect what YOU want. Other reasons to consider a life settlement may include the burden of charges you can’t afford, sudden expenses, or unreasonable premiums. Look into additional kinds of life settlements like hybrid and traditional, both of which may, or, may not be granted depending on the state you live in.

Have a Support Team

The decisions you make about your settlement plan should not be made alone. Ensure that you take the time to include professionals who have greater experience and insight working with these matters. You might get the help of a financial advisor, an insurance expert, and a local attorney before proceeding with settlement plans. To find settlement plan brokers, look into your state guidelines about regulation. Be sure that your broker has their license. The last thing you need is a scam on your hands. If it is more reassuring to you, get your lawyer involved before you plan to sign anything. 

Rules to Live By

You have the right to shop around and consider different offers. Never settle when it comes to something as astronomical as your policy money. Clarify any matters you are uncertain about with your financial advisor. Remember that sensitive life milestones like these are still considered a business by companies. You could easily be the victim of highway robbery if you don’t make the right choice and work with companies whose policy plans are fair to you and your needs. 

You also do not have to answer to anyone but yourself. Your children may feel obligated to state their reasons for receiving beneficiary money or other aspects of your estate. Still, if you are set on spending the money you receive back on other matters, that’s completely okay. You should avoid feeling roped into anything, whether that is through a company or family members. The decisions you make about your money should be for your benefit first, and therefore are more important than anyone else. This is the time to act selfishly and validate your own needs. 

Speak With Your insurance 

It is possible that your insurance provider will be willing to work with you. Not every company will express a willingness to show consideration. Still, for those that do, you might find it surprising to know that insurance agencies may be flexible in how you borrow, as well as how you might consider reducing the face value of your policy. Your insurance company might be open to including lower premiums to make things easier for you. At the very least, you should be able to call your insurance company and find out just exactly what your options are. There are more options out there than selling and embarking on a replacement policy. You might be able to pay off a policy that is significantly less than the one you are currently dealing with. Remember that your insurance company is a business, so you will need to advocate for this yourself if these options are available. They will not likely advertise for these services if they are typically unproductive to the business. 

The Bottom Line

Picking the proper settlement plan requires that you take a good long look at your priorities, your financial capabilities, the options offered by your insurance company, and the advice given to you by your support team. Take your time with the process so that you can cash in on what truly matters to you. 

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