This sponsored post with Mason Finance is intended to help readers understand and calculate life settlement policies.
What is a life settlement?
A life settlement occurs when a life insurance policy is sold to an investor. The life insurance policy is sold for MORE than it’s value but LESS than the death benefit. Read more to learn more about life settlements.
Who is eligible for life settlements?
Determining if you are eligible is largely dependent on your age, policy type and policy size. Typically people who sell their life insurance are 65 or older with a universal, whole or convertible term policy of $100,000 or more. You can read more about who is eligible in this article.
Why should I sell my life insurance?
There are several common reasons you might consider a life settlement including you can no longer afford premiums, the policy isn’t needed or you no longer have a spouse or children who would be dependents, your term policy is close to expiring, you need to supplement your retirement income, or you have some unexpected expenses.
Some pros of a settlement are an immediate lump sum payment larger than if you’d surrender the policy, you no longer have to make premium payments on your policy, medical and long-term care costs are covered and you’ll have more money in your retirement.
Life Settlements cons are that beneficiaries will not receive anything when you die, you may be ineligible for Medicaid, proceeds of the life settlement may be taxed, and depending on your needs, the payout could be too low.
Life insurance settlement calculator
This life insurance settlement calculator gives you an instant and FREE estimate of the payout you would receive if you decide to sell your life insurance policy.
I used the calculator myself, and liked that the results given to me were an immediate estimate, even though I knew it was not an official offer, which would depend on my life expectancy, premiums and the exact type of policy I have.
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