Life insurance is a valuable and smart asset to invest in. However, there may come a time that you are financially unable to continue paying monthly premiums or find that you no longer need to hold onto the policy. It is possible to sell your life insurance policy, and in some cases, it can be a wise move. There are a few different scenarios in which you may want to sell your life insurance policy in an arrangement known as a viatical settlement.
Engaging in this type of financial deal can net you more money than you would receive if you surrender your policy, but less money than the sum your beneficiary would be paid upon your death. This lump sum can go toward living expenses like rent and utilities, medical treatments, or other expenses that may be piling up as you fight an illness or enter old age. For three great reasons to sell your life insurance policy, read on.
1. You have a terminal illness
A large percent of the population of the people who sell their life insurance policy is terminally ill. If you know you will die soon because of a diagnosis, you may be eligible for and want to consider a viatical settlement so that you can use the money to pay for vital medical procedures or cancer treatment if applicable. Investing your money in medical costs can help extend your life, which means more time for you to spend with friends, family, and loved ones before you pass.
Typically, the life insurance policies of the terminally ill are more in demand by buyers, as well, because there is a guaranteed return on their investment. Money gained from selling your policy can also help bridge the gap in your expenses if you are not able to work because of your terminal illness.
2. Nobody needs the death benefit
Another reason that you may want to work with a viatical settlement company to sell your life insurance policy is that there is no one in your life depending on you who may need your death benefit. If you are retired, your children have left the house and have incomes of their own, and your spouse or partner is gone or you are divorced, it may be in your financial interest to sell your policy. It can save you money each month that you will not need to pay premiums, and you can use the lump sum on the more pressing financial needs in your life.
If no one else in your life needs the money, you might as well use the money on personal costs. Working with a settlement company means you will get cash in hand which can reduce stress in your life and help you live the rest of your time to the fullest.
3. You are over a certain age and could use the cash
One last reason to sell your life insurance policy is that you are over 65 years old and you simply want to enjoy the end of your life. Whether you are facing illness or not, realizing you have a limited time left on this planet can be a wakeup call. There may be some things you always wanted to do that are still hanging on your bucket list. If you have made the decision that selling your life insurance policy is right for you, you could use the lump sum of cash to check off some of those items before it is too late.
Getting old or getting sick is never easy. Researching a viatical settlement could be a good course of action for you if you are looking to reduce financial stress and maximize your time with family and friends.
