Reasons for Seniors to Sell a Life Insurance Policy

There are many reasons why life insurance policyholders would want to consider selling their policy. Some of the reasons to consider a life insurance settlement are:

• The policy is no longer needed or wanted. Insurance needs change as the circumstances of life change.
• A better insurance policy can be obtained. Changes in the insurance market have made it possible to obtain better, more expansive coverage with lower premium payments.
• Premium payments have become unaffordable. Many insurance policies have escalating premiums over the life of the policy. In the later years of some types of insurance, the premiums can become very expensive.
• Estate planning needs have changed. Based on your individual situation, life insurance may not be needed anymore based on the value of your estate.
• Rising healthcare costs or other financial burdens have created unforeseen needs. The cost of living may have increased to a level that does not allow you to keep your life insurance policy active.
• The life insurance policy is about to lapse or is to be surrendered. The term of the policy may be near end.
• Divorce has occurred. If a husband and wife have life insurance with each other as the beneficiaries, the event of a divorce makes the life insurance no longer needed.
• Bankruptcy has been declared. Financial difficulty may have occurred and has prevented you from paying life insurance premiums.
• Change in health has taken place. A diagnosis or other change in medical condition may dictate the need to get the proceeds from a life insurance policy now.
• Sale of business has taken place. Business partners often have life insurance policies with the other partners as the beneficiaries. If the business partnership has ended, then the life insurance is no longer needed.
• Death of a spouse has occurred. If your spouse passed away, then you may not need your life insurance, as the beneficiary is no longer living.
• Change in tax law has taken effect. The tax law changes with regard to investments and insurance. There are changes that can affect the desire to maintain a life insurance policy.

If you are interested in learning more about life settlement, please contact a BLC Senior Specialist today.