The top 5 things to know about living regulations



A life insurance settlement converts your life insurance into cash – cash that you can use and enjoy while you are alive. Unfortunately, lifetime settlements are often misunderstood or misrepresented. And this misinformation could prevent you from pursuing an attractive financial strategy or even knowing the full value of your life insurance.

Think of it this way. Your life insurance is an asset. To effectively manage this asset, you need to know what life insurance regulations really are and how they work.

What is a lifetime settlement?

A life regulations is the sale of your life insurance policy for a lump sum in cash. After the transaction closes, the buyer assumes control of the policy and responsibility for premiums. Typically, lifetime settlements are offered to people over the age of 65 with policies valued at $ 100,000 or more. You can verify your own eligibility by contacting a life insurance company for a policy review.

The main advantage of settlement life is the large cash payment. The market value of your contract should be several times greater than the cash value of the contract, for example. In addition, there is no restriction on the cash proceeds of a lifetime settlement. You will likely pay taxes on some of your catch, but you can spend the remaining funds however you want.

permanent life insurance

If you want to sell your life insurance and get the highest payout possible, here are five important facts to know when it comes to life settlement.

1. Lifetime settlements are legal and regulated

Despite the common misconception, life insurance settlements are legal and regulated transactions. As with the sale of a home, a legally defined process is in place to transfer ownership of life insurance. This process ensures transparency, protects the rights of all parties involved and ensures the legal validity of the transaction.

2. You don’t have to be sick to sell your life insurance

Many healthy seniors pursue lifelong settlements and for good reason: they have time to enjoy these unrestricted cash products. You can use your life settlement money to travel the world, fund bucket list experiments, retire early, establish college funds for grandchildren, and / or increase your philanthropic activity.

People with a chronic or terminal illness can also sell their life insurance, but through a different transaction called a viatic settlement.

What role can whole life insurance play in my financial plan?

What role can whole life insurance play in my financial plan?

3. You can get more money selling your policy than giving it away

Several factors enter into market value your life insurance, including your life expectancy, your policy premiums and the value of the death benefit. Even so, the amount you will receive from a life insurance settlement will be much more than what you would get by purchasing the life insurance. Your policy could be worth up to four times your cash value or up to 60% of your death benefit.

4. You can choose between working with a broker or a supplier

Since you have the choice to work with a life settlement broker or a life insurance provider to sell your policy, it helps to know the difference. The broker’s job is to market your life insurance to multiple buyers and get the highest possible offer. The broker represents you specifically and has a fiduciary responsibility to best serve your interests. You pay the broker a commission – it’s taken from the proceeds of the sale – but you should still come away with more money, thanks to a higher sale price.

The providers represent the investors and their job is to purchase the policy at the lowest possible price.

5. Your policy is in your hands

Ultimately, what you do with your life insurance is up to you. You can choose to work with a broker or a supplier, for example. Or you could get an estimate of the value of your policy and decide not to sell at this time.

Whichever path looks right to you, weigh your options before committing to it. Selling your life insurance may or may not be in your best financial interest right now. But you can only make that decision by looking at the market value of your policy and its premiums, as well as your financial and lifestyle goals.

Take control of your future

There are different ways to wind up your life insurance, but a life settlement can be the most lucrative and flexible option. The life settlement is particularly interesting if you no longer need your insurance, why not maximize your return on the premium investment that you have already made?

Even if you are not interested in selling your life insurance today, you may still want to calculate the value of your life insurance to understand its impact on your net worth. You can do this with a life settlement calculator or by requesting a quote from a reputable life settlement company that is not a supplier or direct buyer.

Lucas Siegel is the founder and CEO of Port life regulations, a life insurance company dedicated to helping seniors and terminally ill people sell their life insurance policies, and Port life brokerage, a life settlement broker that helps policyholders receive the maximum cash surrender value of their life insurance through its exclusive auction platform that reaches the world’s largest buyers.

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